Was there some sort of assurance that nothing was going to happen when the contract expired, and this expectation was changed? Freenom hasn’t been registering domains since Jan 1.
It’s seeming a little odd to me that this is catching people with their pants down.
C didn’t sign a contract with B. B let C use A’s property for free while B was managing it. The only contract was between A and B for managing their property.
Using a free TLD for anything you wanted to stick around was a terrible idea in the first place.