I was hired on October 31, to create a website and he had setup domain on wordpress as well, after that I sent messages whether to start work send me credentials of site to start work..
but yesterday night I got his message "after doing a lot of research, I am not going to create website" and ended the contract, and he ask for refunds in escrow, so what should I do?
a ) accept and release the escrow
b ) go into dispute
If you did not actually do any work for the client, then accept that he is somewhere on the spectrum from "unfortunate" to "a flake." (At least he was in contact with you, and didn't simply disappear.) But while he may be a flake, do not imagine that you can charge a client for promises and hopes.
If you did actual work for the client, that is a different situation.