Previous owner Escom LLC was forced to sell after mounting debts put the company in the red.
"To our knowledge, this sale represents the single largest recorded price paid for a domain name in the history of the Internet," the New York Daily News quoted Sedo senior domain broker Jeffrey Gabriel as saying in an official release.
Sex.com was originally registered with Networks Solutions in May 1994 by businessman Gary Kremen, who went on to make a fortune in the burgeoning Internet industry by claiming the rights to numerous domain names, including Match.com and Housing.com.
However, when Stephen M. Cohen illegally obtained the rights to the domain by submitting forged letters, fake faxes and fraudulent emails to Networks Solutions, ownership disputes began.
The ensuing legal battle led the California District Court to award $65 million in damages to Kremen, as well as issue an arrest warrant for Cohen.