Crypto exchange Coinbase has filed a lawsuit against Tobias Honscha, a man from Isernhagen, Germany, for cybersquatting on the domain coinbase.de. According to the lawsuit filed on Thursday in a California federal court, Coinbase claims that Honscha used the domain to redirect users to an app he operates for trading physical coins and to potentially extort the exchange into paying an inflated price for the domain.
Coinbase alleges that Honscha is using and trafficking the domain in bad faith to capitalize on the goodwill of the Coinbase brand, built over more than a decade. The company claims that his actions are a clear attempt to profit by threatening potential fraud or cybercrimes unless Coinbase purchases the domain from him.
Affiliate agreement violation and domain misuse
The lawsuit further claims that Honscha violated Coinbase’s affiliate agreement by using the domain name to host an affiliate link, potentially profiting from Coinbase referrals. Under the affiliate agreement, links cannot “masquerade as being the same as Coinbase” or use the brand’s name in domain names. Coinbase contends that Honscha used the domain to deceive the public into thinking he was affiliated with the exchange.
Coinbase also accuses Honscha of using the domain to “hold the company hostage” by threatening to sell it to a buyer who might use it for fraudulent activities, including phishing scams. According to the complaint, Honscha reportedly warned of “risks of a phishing attack via the Coinbase email account” and the potential to misuse sensitive user data.
Redirecting visitors and operating email services
Coinbase further claims that after instructing Honscha to stop using the domain to host his affiliate link, he redirected visitors to a mobile app for trading physical coins. Additionally, the exchange accuses Honscha of operating an email service through the @coinbase.de email account, which could potentially deceive individuals into sharing sensitive personal information, believing they are communicating with Coinbase.
As part of the lawsuit, Coinbase is seeking damages and profits from Honscha’s alleged misuse of the coinbase.de domain. The company is also requesting that the domain be transferred to its ownership and that Honscha cease all use of the domain. Furthermore, Coinbase is pursuing damages for Honscha’s breach of the affiliate contract, including commissions he may have earned through his use of the domain.