Breaches cured but registrar still needs ICANN’s approval for change of control.
Last Friday, before the long holiday weekend in the U.S., ICANN published an update on the situation at domain name registrar Epik.
The organization said that Epik had met the terms of a breach notice ICANN sent a month earlier. Epik paid the outstanding accreditation fees and resolved all of the complaints customers sent to ICANN about non-renewals and the inability to transfer domains.
ICANN said it will continue to provide assistance to Epik customers who send complaints to the organization related to these issues.
Next up for Epik is getting ICANN to approve a change of control request for the sale of the registrar. ICANN noted that this might take some time given what happened at the registrar:
The assignment review process allows ICANN to perform diligence of the proposed assignment request to inform the decision of whether to approve the assignment. This is work that ICANN does regularly and the process can take several months, depending on complexity. Given the circumstances that preceded the requests for assignment, ICANN expects that conducting diligence for the transaction will be complex, and it make take several months.
A key question remains: who bought Epik? The company will need to reveal its ownership if it wishes to regain the trust of its customers.
Squarely says
Why is it so difficult for epik to come out from the closet?
What are they hiding?
Josh says
Sometimes monsters hide in the closet.
LOL Time says
You mean like a “Monster” who tries to “Rob” you?
MarkMajor says
LOL !
MikeInNYC says
The situation at hand is a serious one, and it requires immediate attention from the management. The resolution of customer disputes regarding domain names sold and purchased, as well as allegations of misappropriation of funds and property, goes far beyond simply paying the outstanding accreditation fees. Addressing the existing complaints sent to ICANN about non-renewals and the inability to transfer domains is just the tip of the iceberg. It’s not a comprehensive solution and will not prevent future litigation; it may even invite more.
The question that needs to be asked is akin to the one posed during the Bernie Madoff scandal: Were funds from domain sellers or buyers misused and mixed with personal and business expenses? If these complaints still exist, were they conveniently ignored for this deal to proceed?
Given the potential for a similar situation to arise, it would be prudent for ICANN to impose a permanent ban on the domain name buy-sell business. The remaining assets should be placed under the control of a court-appointed trustee and not transferred to another company to avoid unnecessary future litigation costs.
The ideal solution would be to establish a completely new company, with a new location, new equipment, and new management. No one from the existing team should remain, or it risks becoming a problematic transfer that could lead to immediate lawsuits and bankruptcy.
The company needs a seasoned CEO with a significant net worth and experience in business transactions, someone who understands the importance of maintaining the integrity of customer funds. As for the new management considering involvement in this situation, it would be wise to reconsider.
While it’s important for businesses to succeed, a few bad actors can jeopardize an entire industry. This situation is a complex problem that should be avoided at all costs. Unresolved liabilities won’t disappear unless a comprehensive settlement agreement is in place.
Customers are advised to consider alternatives like cloudflare.com, which offers domain names at $9 without any markups. It’s a safer and more reliable option than entrusting your business to a company that promises fidelity but fails to deliver.
And now, for a lighter note to end this serious discourse: It’s like choosing between a Honest housewife or 42nd Street Hooker named Candy. Sure, Candy might promise to be sweet, but you might just end up in the doctors office with at least a toothache.
Dammit, Candy you lied to me again now take my money. I’ve should of known.
“Caveat Emptor” aka “buyer beware”
R. Funden says
As long as the assignment is not complete and approved, I doubt that any gTLD registry will deal with the new company. Can’t provide services to a unaccredited registrar after all. So I suspect the cut will not be as clean as they had hoped.