Coinbase Sues Domain Owner Over Alleged Cybersquatting of Coinbase.de

Coinbase has filed a lawsuit against a German individual for allegedly squatting on the domain name coinbase.de and attempting to profit from the company’s brand reputation. The U.S.-based crypto exchange brought the case on Thursday in a California federal court, naming Tobias Honscha of Isernhagen, Germany, as the defendant.

According to the complaint, Honscha used the domain to redirect visitors to a mobile app for trading physical coins and had previously included a Coinbase affiliate link on the site—earning referral commissions. The exchange accused Honscha of acting in bad faith to exploit the goodwill the exchange has built over more than a decade.

“Coinbase recently became aware that Honscha is using and trafficking in bad faith to capitalize on the goodwill that [the company] has developed,” the company said in the filing.

Coinbase Cites Affiliate Breach and Extortion Attempt

The lawsuit alleges that Honscha violated the exchange’s affiliate agreement by incorporating the company’s trademark directly into a domain name, which is prohibited under their terms. The agreement explicitly bans affiliates from using the words “Coinbase” or “Coin Base” in their domain names or creating the impression of affiliation with the company.

“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 and the same with [the company],” the complaint stated.

Coinbase also claimed that Honscha attempted to pressure the exchange into buying the domain at an “inflated price,” warning of potential phishing risks if it was sold to another party. The lawsuit points to remarks made by Honscha in conversations, where he allegedly noted the dangers of fake email activity, ID submissions, and compromised two-factor authentication codes if the exchange failed to acquire the domain.

“This is a clear attempt to hold Coinbase hostage,” the company argued.

Domain Allegedly Used for Redirection and Email Fraud

Beyond affiliate activity, Coinbase says the domain was used to redirect users to unrelated services and even operate an email service under the @coinbase.de address. The exchange claims this setup could easily mislead users into thinking they were interacting with the official company.

At the time of writing, the domain pointed to a forum discussing physical coin collections, where Honscha was listed as the responsible contact. The exchange is asking the court to stop Honscha from using its name, transfer ownership to the company, and award damages for alleged breaches of trademark law and the affiliate contract.