The MLS integrations are somewhat vulnerable to exploitation. Here are the two main exploits:
- Someone lists their own garbage domain at Sedo for a high price and buys it at a registrar with a stolen credit card. By the time the registrar gets the chargeback, Sedo has often paid out the seller who listed his own inventory. The registrar who sold that MLS domain gets left holding the drippy bag. We are wise to this game now. That said, newer MLS integration partners will invariably get played.
- Someone will add a lot of names to their Sedo account that they don't own hoping that some of them will be on MLS somewhere and not locked down. Sedo sells the domain and the registrant quietly sees their domain leave but gets no money. To address this we promptly follow up when a Sedo MLS sales occurs to make sure it was indeed authorized.
The MLS system for domains is still a good idea for people who actively manage their portfolio and submit their domains themselves at Sedo and Afternic. Other than for selling low-end crap names, I am personally no longer a fan of Buy-Now but prefer Make Offer. The MLS partners prefer Buy-Now. If you are an active seller that reads his email, Make Offer will make you more money in the long run.
As for Sedo, their core management team has been quite steady -- familiar faces and nice people. I have been to their HQ. I did email with Tobias and he reply within hours during the late evening CET.
Give them 24 hours to sort it out.