I have been saying for months that Bitinstant was a Ponzi scheme and on the way out.  Ursay has removed the BI logo from his profile; I assume they have finally realized that just having people respond to every message won't matter when you have thousands of customers complaining.  I don't know what happened to the money, but there is a huge hole in their books that they can't recover from.  Their "technical issues" are absolute BS...I am a web developer, and none of the things they have said pass even the most basic smell test.  The code either works or it doesn't; it doesn't selectively work.

I think the roof has finally caved in.  You'll notice they aren't responding anymore in this thread.  It's interesting that the Winklevoss twins are involved in all of this as investors....they are going to get alot of bad press when the feds finally move in and press charges against the main executives.  Bitinstant is destined to become the worst black mark in the history of the Bitcoin community.  Between this and the suspension of withdrawals from Mt Gox, it may actually be the death knell for Bitcoin in general.