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DNW: Stands4 sues Dan.com over Calculator.com transaction

Labeled as legal in Domain Industry News, started by Lox, Apr 22, 2021

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  1. Lox

    Lox _____ VIP Gold Account

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    Stands4 is suing DAN.com and the John Doe domain thief.

    According to the lawsuit, Dan.com has a policy of not listing domains for sale that have active websites. It alleges that the company made an exception after the seller provided a screenshot of the domain in their Network Solutions account.

    In its suit, Stands4 points to several representations on Dan.com’s website about its services, as well as emails from Dan.com employees during the transaction.

    Stands4 also alleges that Dan.com paid the thief in bitcoin, making it impossible to recover the funds and difficult to identify the thief.

    read more (DNW)
     
    The views expressed on this page by users and staff are their own, not those of NamePros.
  2. Lox

    Lox _____ VIP Gold Account

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    Have to say; ... Network Solution should cover all damage to DAN and 10,000s of other people who have been ...
     
    Last edited: Apr 22, 2021
  3. pokainc

    pokainc Top Contributor VIP ★★★★★★★★★★

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    I don't get how the domain was transferred over and only weeks later it was flagged as stolen..
    - not to mention that with names like these you would typically have robust locking mechanisms in place..... like something along the lines that you only unlock the name if you receive a notarized letter by my party and you call me personally to verify that I indeed sent the notarized letter on top of an i dont know secret passcode that is not written anywhere in emails or accessible in the account except in a special file or something... I dont see DAN being at fault here at all.
     
    Last edited: Apr 22, 2021
  4. Lox

    Lox _____ VIP Gold Account

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    Prev. Auction. Sedo and buyer get lucky, started with no reserve, reached 6 figure and ... buyer smells a little too much of.... and walks.
     
    Last edited: Apr 22, 2021
  5. Samer

    Samer Top Contributor VIP

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    People still use Network Solutions O_o
     
    Last edited: Apr 22, 2021
  6. johnn

    johnn WeSellName.com PRO VIP ★★★★★★★★★★

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    The actual name is NotWork Solutions.
     
  7. griff

    griff Top Contributor VIP

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    DAN should give the Sav treatment to Network Solutions, everyone should. Every time I see something like this there's a mention of that registrar
     
  8. Embrand

    Embrand Top Contributor VIP ICA Member ★★★★★★★★★★

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    What a mess. And as always with NetSol involved.

    Maybe DAN should only allow crypto payouts to sellers with a proven track record? At least then there would be a paper trail to pursue.
     
    Last edited: Apr 22, 2021
  9. Grego85

    Grego85 Fire.Horse

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    I've never understood the "send us a screenshot of the domain in your account"

    very very simple to photoshop

    Why is this NetSol's fault? Sounds like Dan's fault to me
     
    Last edited: Apr 22, 2021
  10. DirkS

    DirkS DutchPirates.com VIP

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    On May 27th, 2020, Stands4 LTD in their own complaint indicates to have contacted the domain seller themselves via WHOIS, negotiated a sale price, and then they instructed our company to handle the domain ownership transfer between the two parties.

    That all I need to know. Let them handle the rest in court.

    Some interesting info in the comments by @jberryhill on DNW. If you're an US seller/buyer, take note of that.
     
  11. DAN.COM

    DAN.COM Domain Marketplace Dan.com Staff VIP Gold Account

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    Without diving into too many details, we performed extensive KYC on the seller before she got her BTC payout. We reviewed an official Utility bill and a US government-issued ID. Everything checked out when we researched the domain and the owner.

    Also, BTC is now used by Paypal, Square, Tesla, and so on. It has become mainstream. According to Dutch law, but not only limited to Dutch law, BTC is also seen as a currency just like USD or EURO.

    In this case, someone lost a significant sum due to a hacker having access to a domain for months after the original owner was informed that she was hacked. The original owner, apparently, never changed her password after the first hack which allowed this situation to happen.

    Stands4 had negotiated a deal directly with the seller/hacker before they asked us to handle the ownership transfer. We executed a smooth domain ownership transfer for a small fee and weeks after the transaction was concluded and the buyer actually even started using the domain, issues started to arise.

    The entire situation is absolutely horrendous for the buyer. We fully understand that and that's why we assisted them with everything we had, until, they started using the documents we provided them against us to force us to settle or get negative media attention. And here we are. Two months ago, we almost started a lawsuit against Stands4 LTD in the Netherlands because we were fed up with their threats and harassment. We wanted a Dutch judge to issue a verdict on this case so all parties could move on.

    In hindsight, maybe we should have gone in that route since we'd have a verdict by now while the case set up by Stands4 LTD will take at least 3 years to set up. That's why they started the case in the wrong jurisdiction/forum because they know that they do not have a case that will stand ground. Our legal representation will file for a speedy dismissal of the case to prevent US taxpayers to pay for this frivolous case set up by a foreign company and individual that has no real footprint in the US.

    We're confident that our processes are of high standards. We've handled tens of thousands of transactions flawlessly and our transaction volume is growing 20% month over month without deteriorating our service.

    Time will tell and prove that all their complaints against us are fabricated.

    Kind regards,

    Dan
     
  12. LUP

    LUP Top Contributor VIP

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    Hey please banned domain from Network Solutions. As you did with Sav and Epik. Everything will be alright
     
  13. Embrand

    Embrand Top Contributor VIP ICA Member ★★★★★★★★★★

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    Thanks for providing further details. So it was handled purely as an escrow, not commission based? And when you write "she got her BTC payout", does that mean that you are still convinced seller was indeed the same person as the rightful owner?
     
  14. DAN.COM

    DAN.COM Domain Marketplace Dan.com Staff VIP Gold Account

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    Indeed, the domain was not listed on our marketplace before the buyer and seller contacted us via our support.

    At this point, we honestly have no idea who the real culprit behind the issue is. We do know that the "hacker" is also US-based. What surprised us most is that the current owner of the domain knew that their NS account was hacked but they did nothing to exclude that person from their NS account after they were initially notified.
     
    Last edited: Apr 23, 2021
  15. carob

    carob Top Contributor VIP ★★★★★★★★★★

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  16. karmaco

    karmaco Top Contributor VIP

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  17. carob

    carob Top Contributor VIP ★★★★★★★★★★

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    What I mean is, it became clear that Escrow.com are not legally responsible for due diligence, they just facilitate the transaction. The buyer in that case had the responsibility to do due diligence.
     
  18. tonyk2000

    tonyk2000 Top Contributor VIP ★★★★★★★★★★

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    I'd say DAN did nothing wrong. No marketplace can guarantee that the domain was never stolen. Even recently registered dropped domain might be stolen at some point of time before (and expired). It is unfortunate situation for the buyer, but DAN is not the right party for their lawsuit. However, I would not be surprised if the whole story was inspired / orchestrated by either <censored> or <censored> - one of DAN competitors (censored exact names for the purposes of this post - only allegations). It should not be forgotten that domain market is in fact wild west :(

    Observations:

    DAN should never opened, or operated, U.S.-based legal entity in the state of Delaware, or in any other U.S. state. You are a Dutch company. Great. Stable legal system, no reasons to additionally incorporate in U.S., especially since U.S. authorities do have incorrect and illogical opinion about escrow operations. DAN is not an escrow, but in this lawsuit there are references to unlicensed escrow operations, which makes no sense.

    DAN should permently ban domains registered with webcom - owned registrars (netsol and registercom) due to proven lack of security.

    The last but not the least, the case filled in Delaware court has so many illogical and baseless "On information and belief" allegations, that it makes me wonder who really are the attorneys for the plaintiffs - paralegal? Never dealt with domains before? ... ;-()
     
    Last edited: Apr 23, 2021
  19. capybara

    capybara Established Member

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    Could it be that there is no "hacker"?
     
  20. Samer

    Samer Top Contributor VIP

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    When you own a domain like Escrow.com, - you dont need to, and get to hide behind it.
     
    Last edited: Apr 23, 2021
  21. carob

    carob Top Contributor VIP ★★★★★★★★★★

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    https://domainnamewire.com/2020/07/26/original-calculator-com-owner-sues-claims-domain-is-stolen/

    Were the aborted Sedo auction and suspicions public before the second sale?
     
    Last edited: Apr 23, 2021
  22. King

    King Investor & Creator VIP Gold Account

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    Extremely overpriced & outdated, only used them because of a sale but having to use their interface is not worth saving a few dollars...
     
  23. bmugford

    bmugford www.DataCube.com PRO VIP ICA Member ★★★★★★★★★★

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    This is a difficult situation because unlike in escrow sales of a home for instance, there is no title search. The question is really who takes the loss.

    It is a difficult situation all around.

    Brad
     
    Last edited: Apr 26, 2021
  24. PhongSGC

    PhongSGC Top Contributor VIP

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    can you give more details on this? What's deal? Domain owner had a deal with its hacker? So who is hacker now?
     
    Last edited: Apr 29, 2021

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