Shell companies are not normally used for structuring. That's a different matter entirely. A shell company is usually a holding company, not a company created in order to deceive or to bypass a hard cap on some scarce resource.
Well, there are the fake registrars, such as DropCatch 345, DropCatch 346, DropCatch 347, ... DropCatch 1545. Those are all ICANN-accredited registrars.[1] ICANN parcels out dropped domains among all the registrars who want them at random. Having a thousand dummy registrars improves the odds. That's definitely "structuring" to hog Internet assets.
This is possible only because, while ICANN charges each registry when they acquire a domain, ICANN refunds that if they give the domain back within some time period.
It's both. You could say that the .org debacle more strongly indicates corruption than dysfunction, but it's definitely both with strong ties between them.
As strange and dysfunctional as that is, DropCatch isn't trying to deceive ICANN into thinking those registrars are unrelated companies, so it's not fraud.