Crypto Exchange Coinbase has sued Cyberscotter suspicions via Domain Coinbase.de. It says it is used to exchange physical coins and to redirect users to the app used to purchase exchanges.
Coinbase sued Tobias Honscha from Germany’s Isernhagen in California on Thursday in California, claiming that he was squatting on the domain Coinbase .de for various purposes, including trading physical coins and redirecting visitors to his app to make money as an affiliate of Coinbase.
“Coinbase recently noticed that Honscha is using Domain Coinbase .de to traffic.
Cybersquats, or domain squats, involves purchasing a web domain name similar to existing well-known brands. Phishing con artists often use practice to trick unconscious users, but some domain owners try to sell their domains to trademark owners for profit.
The URL broke Coinbase affiliate agreement, claimed by Exchange
Coinbase claimed that Honscha once used domain names to host affiliate links to crypto exchanges and received rewards for those who signed up through them.
The company said this is in violation of its affiliate agreement. This stated that affiliate links cannot be “assumed to be the same as Coinbase” or that the term “Coinbase or Coinbase” can not be used in domain names.
“Honscha violated the terms of the affiliate agreement using the Coinbase .DE domain. It fully incorporates Coinbase trademarks and gives the impression that Honscha is the same as Coinbase,” the complaint read.
Coinbase claims pressure to buy domains at “inflated prices”
The exchange accused Hongsha of “trying to seek to benefit from the domain by threatening potential fraud or cybercrime unless Coinbase pays an inflated price.”
Coinbase claimed in a conversation with Honscha that it pointed out “the risk of phishing attacks through a Coinbase email account” and “unsolicited submission of ID documents, passwords and one-time 2FA codes.”
“This is an attempt to take Coinbase hostage and to make it a more weapon by threatening to offload it to buyers who further weaponize it,” the company said.
According to Coinbase, domains used for other means including email
After telling Honscha to stop using the domain and host affiliate links, the site claimed that it was used to redirect visitors to the mobile app to trade physical coins.
The company also accused Honscha of “operating an email service via its @coinbase .de email account.”
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“These incorrect emails continue to occur,” Coinbase wrote in the complaint. “The public may very well expect that the company’s or product website will be in a domain name that consists of or contains the company’s name or trademark or variations thereof.”
At the time of writing, the domain was redirected to a forum for discussing physical coins that listed Honsha as the “responsible person” of the site. Emails listed on the site did not immediately return requests for comment.
Coinbase admitted damages and benefits from alleged misuse of Honscha’s domain, asking the court to stop him from using it and perhaps move the domain to Coinbase.
The company also seeks damages for alleged breach of Honsha’s affiliate contract, including a committee he may have received through the domain.
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