I don't know why buying something and then leasing it to someone else would be an illegal thing to do. I guess they made sure it's not illegal in Nevis, at least.
It's more the scenario that the country to which the company, or it's officers, belong/reside in, may take a disliking to their customers (perhaps for unlawful acts), and because the company is seen to own the domain, and either won't or can't hand over the details of the end customer, the company could be liable for those things.
Even if the company obeys every lawful direction on cancelling/handing over domains and whatever customer details they have - they may be seen as facilitating unlawful behavior, and so that in and of itself can be an unlawful act.
