"Allowing a domain name to expire presents several risks, including potential cyberattacks, reputational damage, and the loss of control over your brand's online presence. Cybercriminals may seize the expired domain and use it for phishing, malware distribution, or other malicious purposes. Additionally, a new registrant could impersonate your business, leading to customer fraud and trust erosion."
-Google Gemini
Your expired domain may also be used for subjective, adult content.
Example of client domain that expired and used for nefarious content.
These nefarious actors might also use the WayBack Machine website to grab a copy of your previous website, recreate an exact copy, and post links to third-party sources for link farming (a method of gaming search engines for higher page rank).
In short, the website looks identical to your previous website, but has links to all sorts of questionable content (adult content, illegal content, etc.) These websites are hosted outside the USA, beyond legal jurisdiction.
Why does it matter?
Your website is indexed and recorded within the search engine databases. A search for your business will yeild results for that website, given it's history online.
If you need more explanation or have concerns, please contact us.