Coinbase Sues German Man Over Domain in Cybersquatting Dispute

US-based crypto exchange Coinbase has filed a lawsuit against a German individual, accusing him of cybersquatting on the domain coinbase.de and attempting to profit from the platform’s well-established brand.

Key Takeaways:

• Coinbase is suing a German national for allegedly cybersquatting on the domain coinbase.de.
• The company claims the domain was misused for affiliate profits and misleading redirection.
• Coinbase alleges the defendant threatened harm unless the exchange bought the domain.

The legal action, filed Thursday in a California federal court, names Tobias Honscha of Isernhagen, Germany, as the defendant.

Coinbase alleges that Honscha used the domain coinbase.de to mislead users, redirecting traffic to his own application for trading physical coins.

The complaint claims he also leveraged the domain to earn affiliate commissions by presenting it as an official Coinbase-related website, something the company says is a clear violation of its affiliate agreement.

“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 lawsuit reads.

Cybersquatting, the practice of registering domain names that mimic established brands, often leads to phishing attempts or backroom efforts to sell the domains at inflated prices.

In this case, Coinbase says Honscha’s use of the domain violated terms that explicitly forbid any affiliate from incorporating the Coinbase name into a domain or creating confusion about its affiliation.

The company alleges that Honscha even warned Coinbase about potential risks if the firm did not buy the domain from him.

According to court filings, Honscha noted the possibility of phishing attacks, unsolicited document submissions, and leaked authentication codes if Coinbase failed to act.

Coinbase interpreted these comments as a threat designed to push the exchange into purchasing 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,” the exchange said.

Following Coinbase’s warning to remove the affiliate link, Honscha allegedly repurposed the domain to redirect visitors to a mobile app for trading physical coins.

In addition, the exchange claims he operated an email service using the coinbase.de domain, posing a risk to individuals who may mistakenly believe they are corresponding with Coinbase.

“These mistaken emails have and will continue to occur,” Coinbase said, adding that the average internet user could easily assume that coinbase.de belongs to the company.

As of publication, the domain now leads to a coin collectors’ forum, where Honscha is listed as the responsible party. He has not publicly responded to the allegations.

Coinbase is seeking damages, forfeiture of any profits earned from the domain, a halt to Honscha’s use of it, and ultimately, control of coinbase.de.

The company also wants compensation for affiliate commissions allegedly earned through misuse of its trademark.

As reported, TIME has recognized Coinbase as one of 2025’s 100 Most Influential Companies, labeling the crypto exchange a “disruptor” for its significant role in shaping US digital asset policies and markets.

The accolade highlights Coinbase’s aggressive advocacy in Washington and its expanding influence in the crypto sector.

Coinbase’s stock has surged 42% year-to-date, climbing from around $303 to a high near $382.

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