This is the first I've heard of this story. What evidence is there that he intended to personally profit from the sale of the domain name?
No direct evidence but he and his family aren't exactly going to admit it are they? He had no intention of giving any of the money to charity, otherwise he would have sold it for $10k to Chabad the first time. Previous interviews of the woman he got the domain from suggests he misrepresented himself and he just got outed and embarassed.