Crisis at Registrar RegisterFly: company in disarray, 2 million domains at risk

[regic]

It's been reported to us that Registerfly is pulling in between $5000 - $15,000 us dollars on any given day and not rendering services paid for.  On the 16th of this month our sources told us that over $5200 was received by Kevin Medina and Registerfly by way of Paypal alone.  While Humboldt may have shut down Registerfly's credit card merchant account, Paypal and MoneyBookers are still accepting funds through the Registerfly interface.

Services aren't covered under Paypal's buyer protection policy.

[accentnepal]

Does anybody else think this is a balloon that will continue to expand and when it finally pops it will be bigtime national news?

Usually I enjoy chaos, it allows much faster growth than ordinary times. But this could hit a bit too close.

      :popcorneaters:          :popcorneaters:

[mandy]

Could troubled domain registrar RegisterFly be up for sale?

The Register has seen a copy of a letter of intent from Cogit, a technology-focused consulting group based in New Jersey, offering to buy out RegisterFly’s CEO and sole shareholder Kevin Medina for $1.15 mil. Whether or not Medina has indicated any interest in selling is another matter, and there is a continuing cloud of litigation over the struggling company that could hamper any attempted sale...

The letter of intent makes the sale contingent on Medina personally assuming liability for the company’s debts and liabilities, giving the Cogit Group a fresh start as owner...

full article: http://www.theregister.com/2007/04/25/co..._purchase/

[jezebel]

The letter of intent makes the sale contingent on Medina personally assuming liability for the company’s debts and liabilities,

He'll assume liability when pigs fly.

[mandy]

The latest updates:

A court victory for ICANN:

The Internet Corporation for the Assignment of Names and Numbers (ICANN) revealed today that US District Court Judge Manuel Real has issued a preliminary injunction in its favor allowing for the immediate termination of its Registrar Accreditation Agreement (RAA) with dysfunctional registrar RegisterFly....

Of course, since Judge Real had already issued a Temporary Restraining Order (TRO)to that same effect on April 16, and Registerfly did not comply with that order, frustrated registrants are in the same state of limbo they were in ten days ago...

full article: http://www.theregister.co.uk/2007/04/28/..._transfer/

and ICANN seeks a new home for RegisterFly's 2 million domain names:

Registrants are our first concern. ICANN is following a very determined approach to returning access to domain name registrants impacted by the collapse of RegisterFly,” said Dr Paul Twomey, ICANN President and CEO.

“ICANN knows that many registrants are anxious for a transfer to occur. We are committed to making sure this process is put in place as quickly as possible,” Dr. Twomey added. “While we understand that this process may be frustrating for some RegisterFly customers, it is the first time that ICANN has had to intercede in such a way and these steps are being taken to ensure that the system introduced works as effectively as possible” he said.

In order to become the transfer provider, registrars must be:

    * ICANN accredited for at least two years;
    * in compliance with the Registrar Accreditation Agreement;
    * able to demonstrate that it possesses the technical and financial qualifications necessary to operate a registrar with the number of registrations that the applicant will need to manage if it is selected as the services ...

full announcement: http://www.icann.org/announcements/annou...7apr07.htm

ICANN's terminated registrar procedure:

Terminated Registrar Procedure

27 April 2007

The purpose of this procedure is to enable registrants to transfer their names from a terminated registrar to any registrar in good standing. Broadly, a services provider (who may be a registrar) will be appointed as a temporary organization to hold the registrations and facilitate the transfers of all the names to accredited registrars chosen by registrants on a case-by-case basis. The service provider scope will be strictly limited to this role.

ICANN will make a tender to secure a provider of transfer services (a Failed Registrar Transfer Provider, or “Provider”) who will be compensated to perform the following duties only...

full policy: http://www.icann.org/announcements/termi...7apr07.htm

[accentnepal]

a letter of intent from Cogit, a technology-focused consulting group based in New Jersey, offering to buy out RegisterFly’s CEO and sole shareholder Kevin Medina for $1.15 mil. Whether or not Medina has indicated any interest in selling is another matter, and there is a continuing cloud of litigation over the struggling company that could hamper any attempted sale...

The letter of intent makes the sale contingent on Medina personally assuming liability for the company’s debts and liabilities, giving the Cogit Group a fresh start as owner...

Two million domains for $1.15 Million? GoDaddy would pay more. But Medina would take the money and scram, leaving Cogit responsible.

What I am interested in seeing is how ICANN deals with those who paid for renewals that were paid for but not made and those who lost their domains. It would cost ICANN next to nothing to honor the renewals where the money was intercepted and they should do that, at least as far as can be proven. Those whose domains were sold to others put ICANN in a difficult position. Both parties have a legitimate claim on a non-divisible asset.

[bargainbloodhound]

The Court decision also requires RegisterFly to immediately post a notice on its web site as follows:

NOTICE TO CONSUMERS: THE INTERNET CORPORATION FOR ASSIGNED NAMES AND NUMBERS, THE NOT-FOR-PROFIT ENTITY THAT ADMINSTERS THE INTERNET’S DOMAIN NAME SYSTEM, HAS ISSUED A NOTICE OF TERMINATION OF THIS COMPANY’S ACCREDITATION TO SERVE AS AN INTERNET DOMAIN REGISTRAR. PLEASE SEE www.icann.org FOR FUTHER INFORMATION.

RegisterFly must have its own definition of 'immediately'. 

Those whose domains were sold to others put ICANN in a difficult position. Both parties have a legitimate claim on a non-divisible asset.

A very difficult position.

[accentnepal]

Why am I not surprised that the Judge's message is not visable on Registerfly's home page?

A search for a nonsense name gives eleven extensions available and a search for "sedo" gives zero available - in other words, it looks like eleven registrys are still providing Registerfly with availability data.

[mandy]

ICANN issued this announcement on their blog on the 16th but hasn't provided an update yet:

A deal has been reached by which all of RegisterFly’s domains - including those registered under the ProtectFly proxy system - will be made accessible to their respective registrants shortly.

Full details will follow later today, contingent on the system being in place to deal with what is expected to be a very high volume of enquiries from RegisterFly customers.

The details will be posted on ICANN’s main website and this blog.

announcement and comments: http://blog.icann.org/?p=128

EDIT: RegisterFly has updated their about us page and removed all references to "ICANN accredited".

[regic]

GoDaddy is rumored to be the unnamed registrar,

ICANN has been advised of a deal to transfer all names in RegisterFly’s management from RegisterFly to an existing accredited Registrar with a demonstrated record of customer service. This would be a quick and effective solution to many of the problems that registrants are presently experiencing with RegisterFly. The deal, which has been confirmed with the registrar, is a commercial transaction (where the acquiring registrar has worked out a financial arrangement to take over names managed by RegisterFly).

In order to make the transfer happen, all data must be provided to the acquiring registrar by RegisterFly. We have been informed that most of the data has been now made available. Final steps are underway to effect the full transfer of information which should be completed next week, with an announcement by the acquiring registrar to be made at that time...

full announcement: http://blog.icann.org/?p=130