https://en.wikipedia.org/wiki/Verisign
(Under "Controversies".)
> In March 2012, the U.S. government declared that it has the right to seize domains ending in .com, .net, .cc, .tv, .name, and .org if the companies administering the domains are based in the U.S. The U.S. government can seize the domains ending in .com, .net, .cc, .tv, and .name by serving a court-order on Verisign, which manages those domains.
Perhaps for violations of _federal_ law…
However, applying this for violations of _state_ law seems odd.
Where does it end?
What if a law enacted by a single US city’s city council is violated? Would US as a country seize the domain?