U.S. crypto exchange giant Coinbase is suing a German national for allegedly hijacking its brand through a deceptive website domain — a move the company says was a bad-faith attempt to profit from its global reputation.

At the center of the dispute is the mastermind Tobias Honscha, a resident of the small town of Isernhagen, Germany.

A Leech Feeding On Coinbase's Brand

According to Coinbase’s federal court filing in California, Honscha registered the domain coinbase.de and misused it to mislead users into believing it was affiliated with the legitimate crypto platform.

Coinbase alleges that Honscha leveraged the coinbase.de domain to falsely present himself as an official affiliate, earning commissions by driving traffic to services unrelated to the crypto exchange.

The company says this directly violated its affiliate agreement, which prohibits any use of the Coinbase name in domain registrations or branding.

“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 company claims that Honscha not only misrepresented his affiliation but also redirected users to his own application focused on trading physical coins, exploiting confusion to build traffic and profit.

In a more alarming turn, Coinbase says that Honscha allegedly tried to pressure the exchange into buying the domain by warning of potential fallout if they refused.

According to court documents, he referenced the risk of phishing attacks, unsolicited document submissions, and leaked authentication codes — all of which Coinbase interpreted as coercive tactics.

“This is a clear attempt to hold Coinbase hostage by threatening to offload the domain to a buyer who would weaponize it even more.”

Following Coinbase’s request to remove the affiliate link, Honscha reportedly repurposed the domain to redirect users to a mobile app for trading non-crypto assets, continuing to blur the lines between his platform and the real Coinbase brand.

The exchange further alleges that Honscha operated an email service under the coinbase.de domain, putting users at risk of mistakenly believing they were in communication with Coinbase.

The platform stressed that such deception could easily lead to phishing attempts, mistaken identity, and data exposure.

Coinbase said, highlighting the ongoing risks of brand impersonation, saying

“These mistaken emails have and will continue to occur.”

Coinbase Demands Damages and Domain Control

As of July 29, 2025, the domain coinbase.de now redirects to a coin collectors’ forum, where Honscha is publicly listed as the domain administrator.

Despite the shift, Coinbase is seeking full control of the domain, a permanent injunction on Honscha’s use, and damages for affiliate revenue and trademark violations.

This legal action comes at a time when Coinbase’s public profile is at an all-time high. The company was recently named one of TIME’s 100 Most Influential Companies of 2025, with the magazine calling it a “disruptor” in shaping U.S. digital asset regulation and policy.

Coinbase’s lawsuit underscores the increasing importance of brand protection in the rapidly evolving crypto industry.

As the company’s stock continues its upward momentum—rising 42% year-to-date from $303 to nearly $382—any misuse of its identity poses not only a reputational threat but also a potential risk to users navigating the digital asset space.