DomCopIn 2022, the worlds of traditional tech and crypto collided in a high-stakes legal battle over a single web address: eth.link. On one side was GoDaddy, the world’s largest domain registrar. On the other hand was the Ethereum Name Service (ENS), a leader in the decentralized “Web3” space.
What started as a simple missed renewal fee quickly turned into a $850,000 drama involving a prison sentence, a controversial auction, and a lawsuit that threatened to break a vital piece of the internet.
This GoDaddy vs. ENS domain dispute case study explores how a simple expiration triggered a battle that threatened to disconnect thousands of users from the decentralized web.
The Critical Asset: Why eth.link Was So Important
To understand the GoDaddy vs. ENS Domain Dispute case, we first need to look at how the internet is changing. Most of us use the “traditional” internet (Web2), where we type addresses like .com or .org. However, ENS is part of the “decentralized” internet (Web3), where addresses end in .eth.
The problem is that standard browsers like Chrome, Safari, and Firefox are built for Web2 and cannot “see” an .eth address on their own. This is where eth.link came in.
The Bridge Between Two Worlds
Think of eth.link as a translator. It acted as a gateway (specifically a DNS-to-ENS gateway) that allowed anyone to view blockchain-based websites without needing special software.
- If you had a decentralized site at mywebsite.eth, a user could simply type mywebsite.eth.link into a normal browser to see it.
- It was the primary “bridge” used by thousands of crypto projects to make their content accessible to the general public.
Because it was the “official” bridge, eth.link was more than just a domain; it was a piece of critical infrastructure. If the domain stopped working, it wouldn’t just affect one person; it would effectively “break” the connection to the decentralized web for millions of users.
The Crisis: An Owner Behind Bars
The ownership of eth.link came with a unique complication. The domain was originally registered by Virgil Griffith, who was an early Ethereum developer. In early 2022, Griffith began serving a 63-month federal prison sentence for providing cryptocurrency advice to North Korea. This was a violation of international sanctions.
While Griffith was in prison, he was offline in every sense of the word. He could not access his email or log into his GoDaddy account. He also could not update his credit card information.
A Failed Rescue Mission
The domain was set to expire on July 26, 2022. Knowing that the entire Ethereum gateway was at risk, ENS Labs tried to step in. They reached out to GoDaddy to renew the domain on Griffith’s behalf.
However, they ran into a strict corporate wall. GoDaddy’s policy generally prevents third parties from paying for or managing a domain without the owner’s direct permission.
Although there were reports that GoDaddy initially considered renewing via a service called easyDNS, it ultimately reversed course. They informed ENS that, since Griffith was unavailable, the domain would not be renewed and would instead expire.
This created a ticking time bomb. The bridge to the decentralized web was now counting down its final days of existence.
The Dispute: GoDaddy’s Sale and the $850,000 Auction
In August 2022, GoDaddy released a public statement about the future of eth.link. They confirmed that the domain had expired on July 26 and that it would be returned to the registry on September 5, 2022.
This date was important because it gave the original owner or ENS a clear timeline for when the domain might become available again.
However, things did not go according to that schedule. Instead of waiting until September 5, the domain was moved to an auction held by a company called Dynadot on September 3.
The $851,000 “Snipe”
The auction moved incredibly fast. A crypto company called Manifold Finance placed a massive winning bid. They paid approximately $851,919 to take control of the domain.
On social media, Manifold Finance announced that they had “sniped” the domain. They also stated their intention to restore services once the transfer was complete. This news sent shockwaves through the Ethereum community.
The bridge that thousands of people relied on was no longer under the control of the people who built it. It was now in the hands of a third party that had won it in a surprise auction.
A Breach of Trust
ENS Labs was furious. They argued that GoDaddy had broken its own word by selling the domain two days before the date they had promised. They also claimed that the domain should have been valid until July 2023 based on previous agreements.
The community felt that GoDaddy had essentially pulled the rug out from under them. By selling the domain early, they prevented ENS from having a fair chance to reclaim the critical infrastructure.
The Legal Fight: ENS Takes GoDaddy to Court
Faced with the loss of their critical infrastructure, ENS Labs acted quickly. On September 5, 2022, they filed a lawsuit in the United States District Court for the District of Arizona. They sued GoDaddy, Dynadot, and Manifold Finance.
The GoDaddy vs. ENS Domain lawsuit was built on several serious claims:
- Breach of Contract: ENS argued that GoDaddy had a legal duty to protect the domain and follow the timelines they had publicly announced.
- Violation of the ACPA: They accused the defendants of violating the Anti-Cybersquatting Consumer Protection Act. This law is designed to stop people from taking over domains in bad faith.
- Economic Harm: ENS stated that GoDaddy’s actions “deprived them of their livelihood” and put millions of users at risk.
A Quick Victory
The court recognized the urgency of the situation. Just a few days after the filing, a federal judge granted a preliminary injunction. This was a major win for ENS.
The judge ordered Dynadot to “unlock” the domain immediately. This meant that, while the legal battle was still ongoing, the domain had to be returned to ENS Labs’ control. This prevented Manifold Finance from moving or changing the domain while the lawyers fought in court.
The Cost of Combat
While ENS had its domain back for the moment, the legal battle was far from over. For the next 18 months, the parties went back and forth with legal motions. The costs began to skyrocket. ENS eventually spent over $750,000 in legal fees just to keep the fight alive.
The case became a symbol of how expensive and complicated it can be when “old world” laws meet “new world” technology. It showed that even a clear victory in the short term could become a financial burden in the long term.
The Resolution: A $300,000 Settlement and a Surprising Partnership
By early 2024, the GoDaddy vs. ENS Domain legal battle had been going on for eighteen months. ENS Labs was facing a difficult choice. They could keep fighting in court, which would cost even more money, or they could find a way to settle. In February 2024, the ENS community held a public vote through their decentralized organization. They decided it was time to end the war.
The community approved a $300,000 settlement payment to Manifold Finance. In exchange, Manifold Finance agreed to drop all claims to the domain and sign a non-disparagement clause.
This meant both sides agreed not to speak poorly of each other in public. ENS Labs also received a $750,000 reimbursement from its own community treasury to cover the massive legal bills it had incurred.
From Rivals to Partners
The most shocking part of the story happened just before the settlement was finalized. Despite the bitter lawsuit, GoDaddy and ENS announced that they were officially partnering together.
Instead of fighting over who controlled what, the two companies worked out a way to integrate their services. GoDaddy launched a new feature that allowed its millions of customers to link their traditional domains to their ENS crypto wallets for free.
This was a massive win for both sides. GoDaddy brought blockchain technology to its mainstream users, and ENS gained access to one of the biggest platforms on the internet.
Lessons Learned
This GoDaddy vs. ENS Domain case serves as a powerful example for the tech industry. It showed that:
- Digital infrastructure is fragile: A single person going offline can put an entire network at risk.
- Law moves more slowly than code: While the crypto world moves fast, the court system takes years to resolve disputes.
- Collaboration is better than combat: In the end, GoDaddy and ENS found more value in working together than in fighting in court.
The eth.link domain is now safely under the control of ENS, and the bridge between the old and new internet is stronger than ever.