You’ve all been aware of the fact that RegisterFly was lately involved in a series of lawsuits due domain theft. If not, let me remind you a few hot lines.

The split between the founders of Registerfly.com, the leading domain name registrar, took a tawdry turn last week, as court documents filed by John Naruszewicz and Unifiednames, the corporation that owns Registerfly.com, made some shocking allegations against ousted CEO Kevin Medina.

The complaint seeks compensatory and punitive damages, and alleges that 75,000 domain names were lost in January 2007 alone due to failure to remit registry fees. The complaint goes on to accuse Medina of using corporate accounts as private slush funds, thereby failing to maintain sufficient float to cover registry fees.
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The embezzlement alleged includes tens of thousands of dollars for luxuries such as escort services, personal credit card bills and even liposuction. It also alleges that Medina used $10,000 in corporate funds per month to cover rent on a Miami Beach penthouse apartment.

Registerfly is an ICANN-approved provider of internet hosting and domain name registration services based in New Jersey that controls approximately two million domain names for 900,000 different owners. In recent weeks, the service appears to have effectively collapsed, with owners scrambling to recover domains that were not automatically renewed as agreed, or were paid for and for no apparent reason allowed to lapse well before the agreed upon expiration date.

Source

However, I’m bringing this up because a few hours ago, GoDaddy, one of the acredited ICANN registrars agreed to take over and manage ex-RegisterFly customers. The number is just a bit higher than 850,000, those being added to the already existent 20,000,000.

RegisterFly clients were in limbo after the internal troubles the company had. Official persons declared that many of their customers were unable to renew their domains before expiration, or even to transfer them to another registrar.
I have found no financial information over this deal at this point, but it’s certain that GoDaddy will start running the RegisterFly names within a week.

At the time I’m writing this, RegisterFly is no longer an ICANN certified registrar since The Internet Corporation for Assigned Names and Numbers revoked its certification and sued it for the databases.

I’ll keep you posted with future coverage if anything happens, but I’d also like to know your opinions on this.