Crypto exchange Coinbase has filed a lawsuit against an alleged cybersquatter over the domain coinbase.de, accusing him of redirecting users to an app for trading physical coins and trying to extort the exchange into buying it. Coinbase sued Tobias Honscha from Germany, claiming he used the domain for malicious purposes, including phishing scams.

The exchange claimed that Honscha violated their affiliate agreement by using the domain to host an affiliate link to Coinbase, which earned rewards for sign-ups. Coinbase alleged that this action breached the agreement, as the domain gave the impression that Honscha was affiliated with the company.

Coinbase accused Honscha of attempting to profit from the domain by threatening potential fraud or cybercrimes unless the exchange paid an inflated price for it. Conversations between the parties revealed Honscha’s intentions to leverage the domain for malicious purposes if Coinbase did not comply with his demands.

After being instructed to stop using the domain for hosting the affiliate link, Coinbase claimed Honscha redirected visitors to a mobile app for trading physical coins. Additionally, Honscha allegedly operated an email service through the @coinbase.de email account, potentially gathering sensitive information from individuals who believed they were communicating with Coinbase.

Coinbase has requested the court to award damages and profits resulting from Honscha’s misuse of the domain, cease his usage of it, and potentially transfer ownership to Coinbase. The company also seeks damages for the alleged breach of the affiliate contract, including any commissions earned through the domain.

Read more at Cointelegraph: Coinbase Claims German Man Misusing Squatted URL