
"ICANN has been frustrated and distressed by recent management confusion inside Registerfly," said ICANN's chief executive Paul Twomey.
Customer service at the company has nosedived as a result management struggle between the company's chief executive John Naruzewicz and his former life partner.
In February John Naruzewicz fired the company's chief executive and co-founder Kevin Medina, alleging that he stole company resources to support his lavish lifestyle.
The struggle has caused disruptions in RegisterFly's service to customers, prompting ICANN to start an inquiry on 21 February that could result in termination of the agreement. Medina in a court filing said that such a move would comprise a "devastating [if not death] blow."
Medina fought back. At a court hearing on 9 March he reclaimed the top management position and was determined to be the sole proprietor of the business. He also accused his co-founder of destroying the US$8m company that claims to be the 15th largest domain registrar in the US.
Court documents in case read like a television soap opera with lawyers and former lovers defrauding their opponents out of their legal properties.
Medina portrays Naruzewicz as a person with a "tenth grade education and few technical skills" who has an "inability to deal with customers" and who squandered company funds on US$60,000 Morrocan furniture and down payments on a Florida home.
Naruzewicz accuses his former lover of using company funds to pay for a US$10,000 Miami penthouse a US$6,000 liposuction and US$27,000 to pay for "personal escort".