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Over 6,000 Brexit domains snapped up after mass delete

Kevin Murphy, January 21, 2022, Domain Registries

EURid saw about 6,000 .eu domain names that formerly belonged to Brits re-registered in the first day after a mass delete at the start of the month.

“Around 6000 Brexit-related domain names were re-registered during the first day, and around 6500 as of today,” a registry spokesperson said.

EURid had released around 48,000 domains in batches on January 3, so the portion of domains considered valuable enough to snap up was about 13.5%.

The domains had belonged to UK citizens who no longer qualify for .eu after Brexit came into effect a year ago.

Registrants had been given many chances to retain their names by transferring them to an entity in the remaining EU and EEA states, or to an EU/EEA citizen residing in the UK.

There were almost 300,000 .eu domains registered in the UK at the time of the Brexit referendum in 2016.

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Verisign saw MASSIVE query spike during Facebook outage

Kevin Murphy, January 21, 2022, Domain Tech

Verisign’s .com and .net name servers saw a huge spike in queries when Facebook went offline for hours last October, Verisign said this week.

Queries for facebook.com, instagram.com, and whatsapp.net peaked at over 900,000 per second during the outage, up from a normal rate of 7,000 per second, a more than 100x increase, the company said in a blog post.

The widely publicized Facebook outage was caused by its IP addresses, including the IP addresses of its DNS servers, being accidentally withdrawn from routing tables. At first it looked to outside observers like a DNS failure.

When computers worldwide failed to find Facebook on their recursive name servers, they went up the hierarchy to Verisign’s .com and .net servers to find out where they’d gone, which led to the spike in traffic to those zones.

Traffic from DNS resolver networks run by Google and Cloudflare grew by 7,000x and 2,000x respectively during the outage, Verisign said.

The company also revealed that the failure of .club and .hsbc TLDs a few days later had a similar effect on the DNS root servers that Verisign operates.

Queries for the two TLDs at the root went up 45x, from 80 to 3,700 queries per second, Verisign said.

While the company said its systems were not overloaded, it subtly criticized DNS resolver networks such as Google and Cloudflare for “unnecessarily aggressive” query-spamming, writing:

We believe it is important for the security, stability and resiliency of the internet’s DNS infrastructure that the implementers of recursive resolvers and public DNS services carefully consider how their systems behave in circumstances where none of a domain name’s authoritative name servers are providing responses, yet the parent zones are providing proper referrals. We feel it is difficult to rationalize the patterns that we are currently observing, such as hundreds of queries per second from individual recursive resolver sources. The global DNS would be better served by more appropriate rate limiting, and algorithms such as exponential backoff, to address these types of cases

Verisign said it is proposing updates to internet standards to address this problem.

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.xxx shows up in botnet top-five TLDs for the first time

Kevin Murphy, January 21, 2022, Domain Registries

It is a truth universally acknowledged that the cheaper a TLD, the more likely it is to be abused by bad actors, and that may be what happened to .xxx in the fourth quarter.

SpamHaus listed .xxx as its fourth most-abused TLD for botnet command and control domains in its newly published Q4 statistics, a new entry on the top 20 table that raised researchers’ eyebrows.

From zero, .xxx went up to 223 C&C domains in the period, sandwiched between .ga’s 143 and .xyz’s 396, SpamHaus said. It worked out to 2.4% of .xxx’s active domains, the compamny said.

.com was of course still the runaway leader, with 3,719 C&C domains. .top came in second, with 715 domains.

SpamHaus said:

We don’t often see new TLD entries within the top five of this Botnet C&C Top 20; however, .xxx, an adult TLD, run by registry ICM, has entered at #4. With less than 10,000 active domains but a total of 223 domains associated with botnet C&C activity in Q4 we can only assume that there are problems.

It’s noteworthy because .xxx is not a cheap TLD. With wholesale prices around $60, they usually sell for around $100 a year. Botnet operators, like other types of malefactor, usually choose cheap domains for their activities.

But in 2021 .xxx was celebrating its 10th anniversary, and at least one company was offering names at a .com-equivalent $10 a year, starting in the middle of the year and extending into Q4.

While .xxx registry ICM is now owned by GoDaddy, it was still part of MMX at the time the pricing promotion began.

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ICANN splits $9 million new gTLD ODP into nine tracks

Kevin Murphy, January 20, 2022, Domain Policy

ICANN has added a little more detail to its plans for the Operational Design Phase for the next round of the new gTLD program.

VP and ODP manager Karen Lentz last night blogged that the project is being split into nine work tracks, each addressing a different aspect of the work.

She also clarified that the ODP officially kicked off January 3, meaning the deadline for completion, barring unforeseen issues, is November 3. The specific dates hadn’t been clear in previous communications.

The nine work tracks are “Project Governance”, “Policy Development and Implementation Materials”, “Operational Readiness”, “Systems and Tools”, “Vendors”, “Communications and Outreach”, “Resources, Staffing, and Logistics”, “Finance”, and “Overarching”.

Thankfully, ICANN has not created nine new acronyms to keep track of. Yet.

Pro-new-gTLD community members observing how ICANN’s first ODP, which addressed Whois reform, seemed to result in ICANN attempting to kill off community recommendations may be worried by how Lenzt described the new ODP:

The purpose of this ODP, which began on 3 January, is to inform the ICANN Board’s determination on whether the recommendations are in the best interests of ICANN and the community.

I’d be hesitant to read too much into this, but it’s one of the clearest public indications yet that subsequent application rounds are not necessarily a fait accompli — the ICANN board could still decide force the community to go back to the drawing board if it decides the current recommendations are harmful or too expensive.

I don’t think that’s a likely outcome, but the thought that it was a possibility hadn’t seriously crossed my mind until quite recently.

Lentz also refers to “the work required to prepare for the next round and subsequent rounds”, which implies ICANN is still working on the assumption that the new gTLD program will go ahead.

The ICANN board has give Org 10 months and a $9 million budget, paid out of 2012-round application fee leftovers, to complete the ODP. The output will be an Operational Design Assessment, likely to be an enormous document, that the board will consider, probably in the first half of next year, before implementation begins.

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“We fell short” — Tucows says sorry for Enom downtime

Kevin Murphy, January 19, 2022, Domain Registrars

Tucows has apologized to thousands of Enom customers who suffered days of downtime after a planned data center migration went badly wrong.

Showing true Canadian humility, the registrar posted the following statement this evening:

Beginning Saturday, January 15, 2022, Enom experienced a series of complications with a planned data center migration that caused significant disruptions for a subset of our customers.

We sincerely apologize to all of those impacted. We pride ourselves on being a reliable domain registration platform, and this weekend we fell short. We are committed to regaining your trust and to serving you better.

A full internal audit is underway and an incident report is forthcoming. This will include a summary of events and scope, learnings, and policy and process changes to mitigate future issues.

We reported on the downtime on Monday, as some customers were entering their third day of non-resolving DNS, which led to broken web sites and email.

At the time, Enom was saying it was tracking a “few hundred” affected domains. As customers suspected, that turned out to be a huge underestimate. The true number was closer to 350,000 domains, Tucows is now saying.

The company had been warning its customers about the planned maintenance for weeks, but it did not anticipate a “a bug in the new DNS provisioning system” that stopped customers’ domains resolving.

The migration started Saturday January 15 at 1400 UTC and was expected to last 12 hours. In the end, the DNS issue was not fully fixed until Monday January 17 at about 1845 UTC.

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Crain named ICANN CTO

Kevin Murphy, January 19, 2022, Domain Policy

ICANN veteran John Crain has been named the Org’s new chief technology officer.

He’s replacing David Conrad, who he’s been subbing in for since Conrad left at the end of September.

Crain has been with ICANN for 20 years and was most recently chief security, stability, and resiliency officer.

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Bank spends $800,000 to move from a .bank to the exact-match .com

Kevin Murphy, January 19, 2022, Domain Sales

A small Wisconsin bank has acquired the exact-match .com for its brand for $800,000.

Bank First currently uses a .bank domain, bankfirstwi.bank, but has decided to rebrand to bankfirst.com, CFO Kevin LeMahieu told DI today.

In what many domainers will consider an “upgrade”, the .com was purchased during the fourth quarter from another financial institution.

Its new domain currently redirects to the old .bank domain.

The exact-match .bank domain, bankfirst.bank, belongs to an unrelated Mississippi bank with a similar name. But that company doesn’t use it, preferring instead bankfirstfs.com.

.bank is a tightly restricted and secured gTLD launched in 2015 where domains cost about $1,000 a year. It currently has fewer than 5,000 domains under management.

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Battle for .web “far from over”, says Afilias lawyer

Kevin Murphy, January 19, 2022, Domain Registries

Altanovo Domains’ fight with Verisign and ICANN for the .web gTLD is not over, despite an adverse ruling late last month, according to a top lawyer for the company.

Altanovo, the company previously known as Afilias Domains No 3, has not thrown in the towel and left the path clear for Verisign to launch .web, Arif Ali of the law firm Dechert told DI last night.

“Bottom line: this matter is far from over and no, Verisign doesn’t ‘get to run .web after all;’ certainly if the Board does its job objectively and fairly,” he said in an email.

He said this just hours before ICANN published its latest, but by no means final, board resolution on the .web case.

Ali represented Afilias in its Independent Review Process complaint against ICANN’s decision to award .web to Verisign following a 2016 auction, which was won by a company called Nu Dot Co, secretly backed by $135 million of Verisign’s money.

Afilias technically won its IRP, with the panel ruling last May that ICANN broke its bylaws by shirking its duty to address Afilias’ claim that NDC broke new gTLD program rules. Afilias said ICANN should have forced NDC to disclose itself a Verisign pawn before the auction went ahead.

ICANN got close to signing a registry agreement for .web with NDC, despite it being an open question as to whether the auction was legit, the panel ruled. It ordered ICANN to pay Afilias its $450,000 in legal fees and $479,458 of IRP costs.

What the IRP did not do was void the Verisign/NDC bid, nor give Afilias rights to .web.

Instead, it instructed ICANN to stay the .web contract-signing until its board has formally “considered and pronounced upon the question of whether the [Verisign-NDC Domain Acquisition Agreement] complied with the New gTLD Program Rules”.

The board had held a secret, undocumented discussion about the case in November 2016 and decided to keep its mouth shut and just let the IRP play out, according to the IRP ruling, which essentially told the board to stop avoiding difficult questions and to actually make a call on the legitimacy of the Verisign play.

Before the board could do so, Afilias/Altanovo filed an unprecedented appeal with the IRP panel. Technically an “application for an additional decision and interpretation”, Afilias asked the IRP panel to definitively answer the question of whether Verisign broke the rules rather than merely passing the hot potato back to ICANN’s board.

But in a December 21 decision (pdf), the IRP panel denied Afilias’ request as “frivolous” in its entirely, writing:

The Panel has dismissed the [Afilias] Application in its entirety. In the opinion of the Panel, under the guise of seeking an additional decision, the Application is seeking reconsideration of core elements of the Final Decision. Likewise, under the guise of seeking interpretation, the Application is requesting additional declarations and advisory opinions on a number of questions, some of which had not been discussed in the proceedings leading to the Final Decision.

In such circumstances, the Panel cannot escape the conclusion that the Application is “frivolous” in the sense of it “having no sound basis (as in fact or law)”. This finding suffices to entitle the Respondent [ICANN] to the cost shifting decision it is seeking and obviates the necessity of determining whether the Application is also “abusive”.

The panel told Afilias to pay ICANN’s $236,884 legal fees and the panel’s costs of $140,335, leaving Afilias out of pocket and back to square one in terms of getting clarity on whether Verisign’s actions were kosher.

Afilias had basically accused the panel of shirking its duties and punting its decision on Verisign’s auction bid in much the same way as the panel decided that ICANN had shirked its duties and punted its decision on Verisign’s auction bid.

Nobody seems to want to make a call on whether the successful Verisign-NDC ploy to win the .web auction with a secretly bankrolled bid was legit.

On Sunday, the full ICANN board met to discuss the outcome of the IRP and — surprise surprise — it punted again, instructing a subcommittee to look more closely at the matter:

the Board asks the Board Accountability Mechanisms Committee (BAMC) to review, consider, and evaluate the IRP Panel’s Final Declaration and recommendation, and to provide the Board with its findings to consider and act upon before the organization takes any further action toward the processing of the .WEB application(s).

There’s not yet a publicly announced date for the next BAMC meeting. It tends to meet as and when needed, so we might not have too long to wait.

Once the committee has made a decision, it would be referred back to the full board for a final rubber stamp, and it seems that only after that would Afilias make its next move.

Ali, in an email sent to DI just a few hours before ICANN published its Sunday board resolution last night, said:

The [IRP] Panel also made it clear that the Board can’t just punt on the matter as it did previously, but must decide it, and that its decision is subject to review by a future IRP panel.

There’s nothing preventing Afilias filing another IRP to challenge the board’s ultimate decision, should it favor Verisign. Likewise, if it favors Afilias, Verisign could use IRP to appeal.

Verisign has been pursuing a counter-claim against Afilias, albeit so far only in the court of public opinion, accusing the company of breaking ICANN’s rules by trying to secretly “rig” the .web auction during a communications blackout period.

Ali calls this a “red herring”, among other things.

In my view, whichever way ICANN’s board goes, it’s going to wind up back in an IRP.

With IRP proceedings typically measured in years, and no indication that Afilias or Verisign are ready to back down, it seems the .web saga may still have some considerable time left on the clock.

If you’re desperate to register a .web domain, don’t hold your breath.

Note: most of Afilias was acquired by Donuts a year ago, but the .web application was not part of the deal. The IRP proceedings have continued to refer to “Afilias” interchangeably with “Altanovo”, and I’m doing the same in my coverage.

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BMW porn site leads to registrar getting suspended

Kevin Murphy, January 18, 2022, Domain Registrars

A Hong Kong registrar has had its ICANN contract suspended after failing to transfer a cybersquatted domain to car maker BMW.

ThreadAgent.com, which has about 32,000 .com and .net domains under management, attracted the attention of ICANN compliance after a customer lost a UDRP case concerning the domain bmwgroup-identity.net.

The domain led to a site filled with porn and gambling content, and the UDRP was a slam-dunk win for BMW.

But ThreadAgent failed to transfer the domain to BMW within the 10 days required by ICANN policy, leading to Compliance reviewing the registrar for other areas of non-compliance.

A December 22 breach notice led to the registrar transferring the domain to BMW last week, but it had failed to resolve the other issues ICANN had identified, leading to a suspension notice the very next day.

ICANN wants ThreadAgent to explain why the UDRP was not processed according to the policy, and how it will be compliant in futre. It also says the company is not operating a web Whois service as required.

ICANN has told the company it will not be able to sell gTLD domains or accept inbound transfers between January 28 and April 28, and must display a notice to that effect prominently on its web site.

That second requirement may prove complicated, as ThreadAgent appears to be one of about 20 registrar accreditations belonging to XZ.com, a Chinese group based in Xiamen. It has not used the domain threadagent.com in several years, and its other accreditations, which use the same storefront, are all still unsuspended.

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CentralNic grows revenue 70% in 2021

Kevin Murphy, January 17, 2022, Domain Registries

CentralNic saw its revenue grow by about 70% last year, a bit more than half of which was organic growth, the company said this morning.

The acquisitive company expects to report revenue of about $410 million and adjusted EBITDA of about $45 million when it reports its final numbers on February 28.

That represents year-on-year organic revenue growth of 37% and a 47% growth in EBITDA, the company said.

Acquisitions closed during the year include Safebrands, Wando and NameAction. Most of its recent growth has come from its newish domain monetization business.

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