Coinbase Sues German Man for Cybersquatting Coinbase.de Domain Claims Affiliate Income and Phishing Threats

Coinbase, the U.S.-based cryptocurrency exchange, has filed a lawsuit against Tobias Honscha, a German individual, over the alleged cybersquatting of the domain coinbase.de. The case, filed in a California federal court, claims Honscha has exploited the domain to generate affiliate income and mislead users, creating confusion with the official Coinbase platform. The domain redirects visitors to a mobile app for trading physical coins and previously featured affiliate links to Coinbase, violating the company’s policy that prohibits affiliates from using domain names containing its brand [1].

The lawsuit asserts that Honscha’s actions constitute bad faith use, leveraging Coinbase’s decade-long brand reputation to profit while posing risks to users. Coinbase alleges that after being asked to discontinue the affiliate activity, Honscha shifted strategies, directing users to unrelated services and adopting deceptive email addresses under the coinbase.de domain. This, according to the complaint, exposes users to phishing and other online threats [1].

A key point in the case is the accusation that Honscha attempted to coerce Coinbase into purchasing the domain by threatening the company with phishing attacks and data breaches if the deal was refused. Coinbase interprets these statements as tactics to artificially inflate the domain’s value [1]. Currently, coinbase.de redirects users to a coin-collecting forum, with Honscha listed as the contact person for inquiries. The lawsuit seeks damages, control of the domain, and the seizure of ill-gotten gains.

The dispute highlights the ongoing challenge global companies face in combating cybersquatting—where individuals register brand-related domains to exploit or mislead consumers. Coinbase emphasizes that such practices undermine user trust and corporate reputation. The case underscores the legal and reputational risks associated with domain registration in the digital era, particularly for brands operating in high-stakes sectors like cryptocurrency [1].

Source: [1] German Man vs. Coinbase: The Hidden Story Behind Coinbase’s Domain Fight (https://www.livebitcoinnews.com/german-man-vs-coinbase-the-hidden-story-behind-coinbases-domain-fight/)