Lawsuit alleges that someone made away with $66,000 in fake token presale.
Even if you have a great domain name, people can get confused by other domains that use your brand name. Just ask Orchid Labs, a company creating a decentralized hosting network to avoid censorship.
According to a lawsuit (pdf) the company filed, someone set up a website at Sale-Orchid(dot)com designed to mimic the Orchid.com site. The fake site told people to send Ether in order to participate in a pre-sale of the company’s cryptocurrency tokens.
Orchid is currently in discussions with private individuals about investing, and the perpetrator sent messages to people pointing them to Sale-Orchid.com. Intriguingly, this person sent messages to people who were already in discussions with the company:
To make matters worse the perpetrators are sending e-mail messages out to various people pretending to be Orchid including potential purchasers presently in discussions regarding participation in Orchid’s actual private token sale. Such fake e-mails provide links to the fraudulent website at http://sale-orchid(dot)com.
According to the lawsuit, people have been duped out of $66,000 worth of Ether.
The court issued a temporary restraining order and the site has been taken down. But it would be pretty simple to set up another site like this.
Once GoDaddy received the TRO it deactivated the domain name and removed the Whois privacy. The Whois now shows the organization to be Orchid Labs and the name Patrick Dietzen. The order didn’t demand the transfer of the name, so I’m curious what the story is here. Maybe someone used fake information in Whois.