Coinbase has filed a lawsuit against German resident Tobias Honscha, accusing him of cybersquatting on the domain coinbase.de to mislead users and benefit financially. The lawsuit, filed in a California federal court, claims Honscha used the domain to redirect traffic to a physical coin trading app and to promote his affiliate link—allegedly breaching Coinbase’s affiliate agreement.

The crypto exchange alleges Honscha exploited the Coinbase name to deceive users and generate profit from its established brand reputation. According to the complaint, Honscha not only embedded a Coinbase affiliate link within the domain, but also tried to pressure the company into buying the URL at a high price, warning of potential phishing attacks and sensitive data leaks if Coinbase didn’t comply.

Coinbase emphasized that its affiliate policy clearly prohibits domain names that mimic the company’s name. The lawsuit states that Honscha’s use of coinbase.de gives a false impression of official affiliation, violating the terms of service.

After Coinbase demanded the link be removed, the domain was reportedly repurposed to promote a mobile app for physical coin trading. The exchange further accused Honscha of operating an email service using the @coinbase.de address—raising concerns over possible identity misrepresentation and user confusion.

As of now, the domain redirects to a forum about physical coins, where Honscha is listed as a contact. Coinbase is seeking damages, repayment of affiliate commissions, a halt to the domain’s use, and legal transfer of the domain name.

The case highlights ongoing risks in domain misuse and trademark infringement across the crypto landscape, as major platforms face increasing brand-related exploitation.