GoDaddy.com Takes Over RegisterFly Domain Names and Customers

RegisterFly crumbles under relationship problems of its two co-owners

This week marked a big week for two major domain registrars, GoDaddy.com and RegisterFly. With the Internet Corporation for Assigned Names and Numbers' (ICANN) approval, GoDaddy.com this week obtained all 850,000 generic top-level domain (gTLD) names previously held by RegisterFly. Existing RegisterFly customers will be able to access and manage their domain names from GoDaddy's website.

Over the last year, much has occurred at RegisterFly; and the result was unhappy customers, phone calls unanswered and a barrage of mismanagement. In March of this year, ICANN terminated RegisterFly's status as an ICANN-accredited registrar due to allegations of corporate fraud. It was noted in a lawsuit that co-owner Kevin Medina used corporate funds for personal use. In fact, co-owner John Naruszewicz filed a suit claiming that Medina had spent $27,000 on escort services, $6,000 on liposuction and $10,000 per month on a penthouse in Miami. Medina then countersued by claiming that Naruszewicz spent $60,000 on Moroccan furniture and payments on a home.

RegisterFly owners Kevin Medina and John Naruszewicz were in a downfall situation of their own. The two were reportedly boyfriends for several years but the relationship broke down at the time of ICANN's demands. The result was an attempt for a business takeover by Naruszewicz but due to complications, RegisterFly continued to have compounding problems.

Because of top level management issues, RegisterFly's customer service was negatively impacted. This resulted in disgruntled customers and a large number of complaints to ICANN. On March 16 of this year, a class action lawsuit was filed, claiming that RegisterFly knowingly defrauded customers.

According to the press release:

RegisterFly customers have been affected by recent problems and the impending loss of RegisterFly’s accreditation as a domain name registrar. GoDaddy.com will notify RegisterFly customers of the switch and automatically move their domains for them. Those who still go to the RegisterFly Web site will be directed to Go Daddy.com for managing and renewing their domain names. However, some RegisterFly customers had chosen to move their domain names to GoDaddy.com even before this deal.

"The RegisterFly situation has been extremely difficult -- first and foremast for registrants, as well as for the entire registry and registrar community," said GoDaddy.com CEO Bob Parsons.

RegisterFly is currently under legal scrutiny for failure to oblige to several court orders. Medina is the primary blame for the trouble at the company and he failed to show up in court several times in the past.

ICANN pursued a solution to RegisterFly's problems and on May 29 of this year, GoDaddy.com purchased RegisterFly's customer database for an undisclosed amount. ICANN said it will ensure that RegisterFly customers will be well taken care of and indicated that it was excited to see GoDaddy.com willingly lend a hand.

"I want to commend the organizations that have come to the table to ensure people's domain names were protected to the extent possible," ICANN CEO Dr. Paul Twomey said.

Reference:Tuan Nguyen,dailytech