I’m not sure what the consequences are for ignoring it, but it would violate the ICANN RAA to lock a person out of being able to transfer their domain except for legal reasons like evidence of fraud or a court order. Sure, they can terminate your account on their services but they can’t prevent you from transferral without violating their agreement with ICANN.

It would be a weird scenario that you’re describing that would be unusual and exceedingly rare. You would need to be directly connected to something highly illegal for that to happen, not just a normal user.