Domain "Ransom" Scheme Cost Our Client Their Business Domain

My Experience with Domain Transfer Predatory Practices I'm writing this as a web development company owner who has witnessed this pattern repeatedly across multiple registrars including Tu***s, KwikWeb/KwikWap, and GoDaddy.

What Happened: Our client, Eeden Social Media Marketing, requested a legitimate domain transfer for eedenmarketing.com. Despite providing the correct auth code, the losing registrar placed the domain in redemption mode rather than allowing the transfer.

The Scheme: Domain placed in artificial "redemption" status Client offered option to pay R1,800+ redemption fee to hostile registrar When client refuses, domain eventually drops Domain instantly acquired by major registrar (in milliseconds) Original domain now held for ransom at R61,535.77

What I Witnessed: I was monitoring the domain's WHOIS status and watched it change from "redemption" to "active" - completely skipping "available." This happened so fast it's clearly automated, not coincidental.

The Pattern: This isn't isolated. I've seen identical behavior from: Tu***s (hostile during transfer process) KwikWeb/KwikWap (deliberately uncooperative) GoDaddy (now holding domain at premium price)

Impact: A legitimate business lost their established domain and now faces paying 4,000x the normal registration fee or starting over with a new domain.

Evidence: Screenshots of real-time status changes Documentation of all transfer attempts Records of registrar communications

To Other Business Owners: Transfer domains well before expiry Document everything Consider registering backup domains Be aware this practice exists

This appears to be a coordinated effort across registrars to monetize domain transfers. The speed and consistency suggest industry-wide systems designed to capture dropping domains.

GoDaddy even has a reporting mechanism for domain grabbing complaints, suggesting they're aware of criticism but continue the practice.