Coinbase Sues Cybersquatter Over Domain

Crypto exchange Coinbase has filed a lawsuit against Tobias Honscha from Isernhagen, Germany, claiming that he is squatting on the domain coinbase.de. Coinbase alleges the domain is being used to redirect users to an app for trading physical coins and to potentially extort money from the exchange.

Coinbase claims it recently discovered Honscha’s usage of coinbase.de, which it views as bad faith exploitation of its brand’s goodwill built over the past decade. The practice of cybersquatting involves obtaining a domain name closely resembling a well-known company to mislead users or profit.

Affiliate Agreement Violation

According to the lawsuit, Honscha once used the domain for hosting an affiliate link to Coinbase, which contradicts its affiliate agreement that prohibits any resemblance to Coinbase in domain names. Coinbase argues that this action violates their agreement as it incorporates their trademark.

Extortion Allegations

Coinbase alleges Honscha attempted to profit from the domain by threatening cyber fraud unless they purchased it at an inflated price. Honscha reportedly emphasized risks of phishing attacks if the domain was not bought from him.

Redirects and Email Mishaps

After Coinbase instructed Honscha to stop using the domain for his affiliate link, he redirected it to a site related to trading physical coins. Coinbase also accused him of operating an email service through @coinbase.de, potentially gathering sensitive information from individuals who mistakenly believed they were communicating with Coinbase.

At the moment, the domain redirects to a forum about physical coins, listing Honscha as a responsible party. Coinbase is seeking damages, profits, and a transfer of the domain while pursuing Honscha for breaching the affiliate contract.