Cryptocurrency exchange Coinbase has filed a federal lawsuit against a resident of Germany, accusing him of unauthorized use of the domain coinbase.de. The lawsuit addresses issues of cybersquatting and breach of an affiliate agreement.
Details of the Lawsuit
Coinbase accuses Tobias Honscha of cybersquatting and violating the terms of the affiliate agreement by using the domain coinbase.de to redirect traffic to an app focused on physical coin trading. According to the complaint, this use violates rules that prohibit the use of the Coinbase name or its variations to create a false impression of affiliation with the official Coinbase platform.
> "Honscha violated the terms of the Affiliate Agreement by using the coinbase.de domain, which fully incorporates the COINBASE trademark and gives the impression that Honscha is one in the same with Coinbase," the lawsuit states.
Attempt to Pressure Coinbase
Coinbase also alleges that Honscha attempted to pressure the company into purchasing the domain at an inflated price. He warned of potential risks, including phishing attacks and data leaks, if Coinbase refused to buy the domain.
> "This is a clear attempt to hold Coinbase hostage by threatening to offload it to a buyer who would weaponize it even more," Coinbase’s filing noted.
Fraudulent Use of Domain
After Coinbase requested the affiliate link be removed, the domain was reportedly redirected to a mobile app associated with trading physical coins. It was also revealed that Honscha operated an email service using the @coinbase.de domain, which could deceive users into thinking they were communicating with the official Coinbase support team.
> "These mistaken emails have and will continue to occur,” Coinbase stated, adding that users often assume company-related domains are legitimate corporate sites.
Coinbase is seeking a court order to stop Honscha from using the domain, transfer it to Coinbase, and award damages for trademark infringement and breach of the affiliate agreement. This case highlights the importance of protecting brand identity in the digital age, especially in the fast-moving cryptocurrency sector.
