No lawyer? Any reason why none was mentioned? Extortion is serious federal crime (across state lines, multiple companies, even clear admission of guilt). At the least it would get GoDaddy's attention vs. just asking nicely.
I was surprised that the victim didn't get an attorney involved. This is an example of a situation in which a court could very swiftly (same day, usually) issue an injunction to preserve the status quo while the merits get sorted out in court. Most domain providers I've dealt with will freeze a disputed account pending legal resolution of ownership, which can be decided via the court system or a WIPO arbitration.
It is a long shot, and would take ton of money in fees mainly for a very skilled private investigator but you are absolutely correct this is one route to go.
