Crypto startup clashes with Deloitte over domain – and wins

Crypto startup Don’t Know Your Customer has managed to avoid a web squatting complaint brought by accountancy giant Deloitte over its domain name.

Deloitte offers a service for Know-Your-Customer operations called DKYC, which involves due diligence via document collection.

But the mega-firm took issue with web design firm Penultimate Media Systems registering a version of that name as dontkyc.com for its crypto client — a startup that offers prepaid cards that are a way to use certain Binance Chain tokens in the real world without had to hand over personal data.

A recent decision by the World Intellectual Property Organization, shared by Domain Name Wire, showed that Deloitte failed to establish that the disputed name was being used by the crypto firm illegally, highlighting that the domain name is not dkyc.com, but dontkyc.com.

The problem for Deloitte was that the domain name is “very similar” to the trademark and that the crypto firm offered financial services under its identical “DKYC” sign, according to the document. It also noted that the crypto firm does not identify itself as an active company or provide a valid mailing address on its website.

Deloitte claimed that the crypto startup had made several references with fraudulent intent to “DKYC”, but not using “dontkyc” – which is reflected in the disputed domain name.

For its part, the domain owner was forthcoming, saying it is open to changing branding and changing references to “DKYC” if that would help the case. It claimed to have applied to the US Patent and Trademark Office for the disputed domain name prior to registration to no avail. It was later learned that DKYC was registered in other territories.

The website showed as of Wednesday that DKYC is rebranding to “ShadowFi.” The startup describes itself as a small community-based non-profit token operating on the Binance Smart Chain, promising an absence of KYC measures to ensure privacy. “Our supplier does not know who we are and we do not know who you are. No ID required. Ever,” the website says.

WIPO’s sole panelist Adam Taylor said Deloitte still has the option to take the crypto firm to court for intellectual property rights infringement, if they believe there are sufficient grounds to do so.

Representatives for Deloitte, DKYC and Penultimate Media did not return Blockworks’ request for comment by press time.

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