Daniel Goncalves is a guy that leaves in New Jersey that is the first to be charged with stealing a domain name and reselling it. Goncalves stole P2P.com and sold it on eBay. The buyer was Los Angeles Clippers basketball player Mark Madsen, who played ball at Stanford University.
Goncalves somehow got a hold of the password and shifted ownership to himself. Then he resold the domain name on eBay to Madsen, who was unaware that the domain name was stolen. Goncalves was arrested on Thursday for felony charges that include unlawful taking or deception, computer theft, and identity theft. Each of the 3 counts could carry a maximum sentence of 10 years.
Police estimated that the P2P.com domain name is worth about $200,000 based on the popularity of file sharing. Madsen paid $111,000 for the domain name. But Marc Ostrofsky, one of the legitimate owners of the P2P.com domain name said that his company spent 30 months and $500,000 trying to get back the domain name. They plan to file a civil lawsuit against Goncalves and his brother, Madsen, and GoDaddy.com. Ostrofsky said that GoDaddy was slow at responding to the theft.