Cryptocurrency exchange Coinbase has filed a lawsuit against a German resident, accusing him of cybersquatting on the domain name coinbase.de. The company claims the domain was used to redirect visitors to an app for trading physical coins and possibly to pressure Coinbase into purchasing the domain.
The lawsuit, filed Thursday in a California federal court, names Tobias Honscha of Isernhagen, Germany. Coinbase alleges Honscha used the domain in bad faith to profit from its brand, including by directing traffic to his own coin-trading app and earning revenue as a Coinbase affiliate.
“Coinbase recently became aware that Honscha is using and trafficking in the domain coinbase.de in bad faith to capitalize on the goodwill that Coinbase has developed in the Coinbase name over the past decade and more,” the company said in its filing.
Cybersquatting—also known as domain squatting—involves registering domain names that mimic established brands, often to deceive users or resell the domains at a profit. Such tactics are frequently associated with phishing schemes and trademark exploitation.
Coinbase Claims URL Violated Its Affiliate Agreement
Coinbase alleges that Honscha previously used the domain coinbase.de to host an affiliate link to the exchange, earning rewards for new user sign-ups.
According to the company, this use violated its affiliate agreement, which prohibits affiliates from creating links that “masquerade as being the same as Coinbase” or from using the words “Coinbase” or “Coin Base” in domain names.
“Honscha breached the Affiliate Agreement by using the domain coinbase.de, which entirely incorporates the COINBASE trademark and creates the false impression that he is directly affiliated with or identical to Coinbase,” the complaint stated.
Coinbase Alleges Pressure to Purchase Domain at “Inflated Price”
Coinbase has accused Honscha of trying to profit from the domain by implying potential threats of fraud or cybercrime unless the company agreed to pay an inflated price for it.
According to the lawsuit, Honscha warned in conversations about the “risks of a phishing attack via the Coinbase email account” and the possibility of users “unsolicitedly submitting ID documents, passwords, and one-time 2FA codes” if the domain remained in his possession.
“This is a blatant attempt to hold Coinbase hostage by threatening to sell the domain to someone who could exploit it even further,” the company stated.
Coinbase Says Domain Was Also Used for Other Purposes, Including Email
Coinbase claims that after instructing Tobias Honscha to stop using the coinbase.de domain to host his affiliate link, he began redirecting the site to a mobile app for trading physical coins.
The company also accuses Honscha of running an email service through the @coinbase.de domain, which could mislead individuals into thinking they were communicating with the official Coinbase team—potentially exposing them to privacy and security risks.
“These mistaken emails have and will continue to occur,” the complaint states. “The public may reasonably expect a company’s corporate or product website to exist at a domain that includes its name, trademark, or variations thereof.”
As of the filing, the coinbase.de domain redirected to a forum dedicated to discussions about physical coins, listing Honscha as the site’s “responsible person.” A listed email address did not respond to a request for comment.
Coinbase is asking the court to award damages and profits allegedly earned through misuse of the domain, to block Honscha from further using it, and to potentially transfer ownership of the domain to Coinbase. The company is also seeking damages for Honscha’s alleged breach of the affiliate agreement, including any commissions he may have received.
