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Is it possible that they have some type of copyright or name claim to your domain, and just couldn't properly express that in English? That is the gist of what I got out of it, it sounds like they are saying that they would have given you some money for it to make the process easier, but since you were unwilling, they are going to take further steps to take the domain away from you in which case you would get nothing.
Is that a possibility?
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