The truth is slightly different:
* you sniped it after the main contributor of the open source project with said domain name expressed the desire to get the domain
* After asking in the groupchat if someone sniped the domain, you remained silent
* you neither did anything with the domain, nor did you contribute to the project
As said, it's your LEGAL right to do with it whatever you want.
It's also nostr:npub12rv5lskctqxxs2c8rf2zlzc7xx3qpvzs3w4etgemauy9thegr43sf485vg s right to ban you from the group for actively trying to sabotage
So what are we talking about?
Also, which threats of extortion were made? That's a pretty serious accusation