RegisterFly became an accredited registrar of ICANN with the acquisition of “Top Class Names”. The issues that RegisterFly faced began with the allegations between the two business partners of the company regarding the misappropriate use of funds within the company. In 2007, the company was sued for fraud under the accusation of attempting to register or renew domain names. Several other lawsuits followed in issues regarding ownership, customer complaints and finally bankruptcy.
Due to this situation, RegisterFly attracted upon its reputation the reclamation of many customers and a high number of complaints from ICANN and other organizations that had to suffer from their behaviour.