Crypto exchange Coinbase has initiated a lawsuit against Tobias Honscha of Isernhagen, Germany, on April 30, 2024, in the U.S. District Court for the Northern District of California. The complaint alleges Honscha cybersquatted the domain coinbase.de
, redirecting users and demanding payment to avoid “weaponizing” the domain further.
Cybersquatting and Misuse
Coinbase claims Honscha registered coinbase.de
in late 2022 or early 2023, exploiting Coinbase’s established goodwill. The alleged misuse included:
- Initially hosting affiliate links to Coinbase, in breach of its affiliate agreement.
- Redirecting users to websites discussing physical (non-digital) cryptocurrency coins.
- Using an email service resembling @coinbase.de, potentially tricking victims into divulging sensitive information.
Threats Implied
The lawsuit accuses Honscha of attempting to extort Coinbase. During negotiations, he allegedly suggested “risks of a phishing attack via the Coinbase email account” could follow if Coinbase rejected his sale demand, coupled with the need to handle “unsolicited submissions of ID documents, passwords, and one-time 2FA codes.”
Coinbase describes this as a tactic to “hold [it] hostage by threatening to offload it to a buyer who would weaponize it even more,” coercing payment for an “inflated price.”
Litigation Demands
In its complaint, Coinbase seeks:
- Compensatory and exemplary damages from Honscha.
- Moral damages.
- Recovery of commissions purportedly earned via the cash domain.
- An injunction prohibiting Honscha from further using or trafficking in
coinbase.de
. - Transfer of
coinbase.de
registration control to Coinbase.
Coinbase asserts the domain promulgated consumer confusion, misled users, and endangered its reputation and customers.