Being extorted: Domains taken down by fake reports

I run an e-commerce business in Mexico that sells cannabinoids such as THC-A, THC-P, HHC, etc., which are legal because they contain less than 1% Δ9-THC.

Recently, someone contacted me demanding $200 USD per month to keep my website online, but I refused to pay. After that, they reported my domains, and one of my .net domains has already been taken down.

The registrar is now asking for documentation that I don’t have, since I source my products from other websites in Mexico and don’t hold a license (as it shouldn’t be required because I’m not selling Δ9-THC).

I think this might be some kind of extortion or bad-faith reporting.

Has anyone dealt with something similar? What would you do in this situation, and how can I avoid getting my domains taken down again?

Your domain registrar is a problem if it cant handle false reporting. Transfer your domains to more reliable domain registrar.
https://www.blackhatworld.com/search/25859124/?q=Bullet+proof+registrar&o=date

use another registrar like njalla, incognet, nicenic, or flokinet to have less potential issues

Don't worry... you're not alone. Recently covered a story where a bad actor used fake abuse reports to threaten an online pharma who had to hop between so many registrars who kept taking down their domains... move your domains ASAP to Trustname (online pharmas are a big part of their customer base), NameISP, or Njalla (but note that their reports are still handled by Tucows, so it's 50-50)

Domain registrar easily suspended you over fake reports you should move to better registrars that ignore this such as Namecheap or Godaddy never suspend over false reports.

Iit's wild how people try to pull stuff like that. Maybe look into getting some quick legal advice on how to secure your business's legality and documents, or even report the extortion attempts, 'cause this is looks unfair

That sounds super shady and totally unfair, but you honestly need to look for a domain registrar that is known for being more lenient or privacy-focused since the current one is already giving you a hard time