BTC Capital Management, an investment management services provider based in Des Moines, Iowa, has filed a lawsuit against Domains by Proxy in the U.S. District Court for the Southern District of Iowa. The lawsuit accuses Domains by Proxy, located in Scottsdale, Arizona, of engaging in unfair competition and false advertising related to an alleged “bitcoin scheme” that has deceived consumers into investing significant amounts of money.
According to the lawsuit, Domains by Proxy played a role in promoting bitcoin trading through unauthorized use of the names and likenesses of BTC Capital Management’s executive team. The lawsuit highlights an unknown individual referred to as John Doe, who purportedly solicited business in Iowa through a highly interactive website for an entity called Bitcoin Capital. This website is hosted by Domains by Proxy and displays BTC Capital Management’s actual Des Moines address as Bitcoin Capital’s address. Moreover, the site features the names, photos, and a fraudulent business registration certificate of BTC executives, taken directly from BTC’s own website.
BTC Capital Management became aware of the scheme when it received phone calls from consumers inquiring about their Bitcoin Capital accounts. Subsequently, BTC reported the website to the FBI’s Cyber Crime Division and made multiple requests to Domains by Proxy, urging them to remove the BTC-related content from the site. Unfortunately, none of the five requests received a response.
The lawsuit reveals that a Florida man discovered Bitcoin Capital through a Facebook contact who directed him to the website containing BTC’s information. As a result, the man claims to have been convinced to invest over $300,000 in the Bitcoin Capital scheme.
BTC Capital Management also states that it recently received voicemail messages from an angry Canadian consumer who wrongly believes BTC is involved in the bitcoin scheme. The messages allegedly contained offensive language and threats, including statements like “We’re gonna take you down… We got you… It’s coming.”
Citing immediate and irreparable harm to both BTC and the individuals misled by the website’s content, BTC seeks an injunction to cease the continued use of its information and claims for actual damages.
As of now, Domains by Proxy has not filed a response to the lawsuit.
