Of course he can, we all know that. But we also all know that you're a shitty person if you do that (at least all grown ups in the room do).
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I believe the two of you will reach an agreement 🤝
Ask for a price. Maybe it's reasonable. And of course domains will get sniped if you produce value but some might just hold the domain to give it to you for barely a premium above what they paid over the time that they held it. Is he asking millions? Maybe now he will as publicly calling him a terrorist for registering a domain is not exactly diplomatic.