tl;dr
Coinbase has filed a lawsuit against Tobias Honscha from Germany for cybersquatting on the domain coinbase.de. Coinbase alleges Honscha redirected users to a physical coin trading app and used the domain to act as a Coinbase affiliate, violating their affiliate agreement. The company claims this inf...
Crypto exchange Coinbase has initiated legal action against Tobias Honscha from Isernhagen, Germany, alleging cybersquatting on the domain coinbase.de. Coinbase contends that Honscha has used the domain to redirect users to an app for trading physical coins and has sought to monetize the domain by acting as a Coinbase affiliate, which the company claims violates its affiliate agreement.
According to Coinbase, Honscha’s use of the coinbase.de domain infringes on their trademark by creating confusion and giving the false impression that he is affiliated with the exchange. The lawsuit highlights that the domain hosted an affiliate link, breaching the terms that prohibit affiliates from using “Coinbase” in domain names. Coinbase asserts this activity constitutes bad faith and attempts to exploit the company’s goodwill built over more than a decade.
Beyond affiliate violations, Coinbase accuses Honscha of leveraging the domain for dubious purposes including redirecting traffic to a mobile app for trading physical coins and operating an email service under the @coinbase.de address. This email service could mislead individuals into thinking they are communicating directly with Coinbase, potentially compromising sensitive information.
In a more serious allegation, Coinbase claims Honscha attempted to extort the company by threatening phishing attacks and the misuse of customer credentials if the domain was not sold at an “inflated price.” The company portrays this as an effort to hold Coinbase hostage by potentially enabling malicious actors to exploit the domain further.
The domain, at the time of reporting, redirected to a forum discussing physical coins, with Honscha listed as a responsible person. Coinbase is seeking court intervention to recover damages, profits from the domain’s misuse, cessation of Honscha’s activities involving the domain, and possibly the transfer of coinbase.de ownership to Coinbase. They are also pursuing claims related to breach of the affiliate contract and related commissions.