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I wonder if they could sell their domain name to cover some of their debt... 4 letter .com domains are hard to come by.

And that name could certainly be of some interest for people in the security or cryptography fields (kagi meaning key in Japanese)

Indeed, the original Kagi logo played on this - if you looked at their logo upside down, it spelled Key.

And "Kee" was the owner's first name, as well!

Suppose I had a four-letter domain I'm not using; what avenues are available for selling it, aside from Sedo?

You would need to find a domain broker you trusted to sell it for you.