Coinbase Sues Over Lookalike Domain Used to Earn Affiliate Cash

Last Updated on July 28, 2025

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Close-up of a computer screen displaying the Coinbase web interface in dark mode. Source: Mojahid Mottakin - stock.adobe.com

Key Takeaways:

  • Coinbase has filed a federal lawsuit against Tobias Honscha for using the domain coinbase.de to mislead users and profit from affiliate commissions.
  • The company accuses Honscha of cybersquatting, trademark infringement, and attempting to pressure Coinbase into buying the domain by highlighting potential security threats.
  • Coinbase seeks domain transfer, damages, and recovery of affiliate commissions allegedly earned in breach of contract.

Coinbase has filed a lawsuit against Tobias Honscha, a resident of Isernhagen, Germany, for allegedly misusing the domain coinbase.de to exploit the exchange’s brand reputation.

Filed in a California federal court, the suit accuses Honscha of cybersquatting using the domain to redirect users to a physical coin trading app and to earn commissions via Coinbase’s affiliate program, in breach of the company’s terms. 

The affiliate agreement strictly prohibits use of the name “Coinbase” in domain names or in any way that could mislead users.

Coinbase claims Honscha not only infringed on its trademark but also attempted to pressure the company into buying the domain at an inflated price by raising security concerns like phishing threats and leaked credentials.

After being told to stop using the domain for affiliate traffic, he allegedly repurposed it to promote his coin trading app and continued using an email linked to the domain, risking user confusion

The domain now redirects to a coin discussion forum.

Coinbase is seeking damages, a transfer of the domain, repayment of affiliate earnings, and an injunction to prevent further misuse of its brand.

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