Domains typically can’t be seized for arbitrary ToS violations, as registrars who do this can lose their accreditation with ICANN (and thus their ability to host domains at all). If the registrar could “frame” you for something like DNS abuse then maybe they could justify a suspension, and if they don’t unsuspend it after you correct the issue, you’d have to file a complaint with ICANN to (hopefully) get it back. If something like this happened and became public, though, the registrar would lose tons of business, as people would develop doubts about the registrar’s reputation.