Fund.com Never Sold for $10 Million, Actually Sold for $1.5 Million

The price history of the domain name Fund.com is once again drawing attention. It was once reported that Fund.com was sold for $10 million in 2008, but that news has now been proven false, with a ruling from the Delaware Court of Chancery revealing the truth behind the deal.

According to court documents, the alleged $10 million deal in 2008 was found to be false and was really part of a stock ginning and selling scheme. The ruling stated that the price was faked through fraudulent transactions and that Fund.com actually sold for much less than that amount.

Following this ruling, the domain name Fund.com changed hands via domain broker Igloo and was eventually successfully sold by Media Options in 2018. Of concern is that one investor, Braziel, attempted to utilize a tax strategy in the sale of the domain name, avoiding tax liability by claiming that the transaction resulted in a net operating loss (NOL) of $8.725 million. To prove this loss, Braziel falsified the purchase price of $10 million and calculated the final sale price and loss on that basis.

Braziel used this falsified high price as the basis for his tax return, even though he later discovered from the company's investigation that the $10 million transaction price was not real, but rather a misrepresented amount by Galanis to support stock price manipulation. In actuality, Fund.com was sold for much less than $10 million in multiple transactions. The true amount traded was probably $1.5 million. The initial high price reported was simply a result of market speculation and did not reflect the true transactions.

The revelation of this case not only reveals the true sale price of Fund.com, but also exposes disinformation and manipulation in the marketplace, posing new challenges to investors and industry regulation.