It is likely that many BitSpend employees have had all or many of their services disconnected due to their lack of money, of course due to their banks ceasing all of their funds.

It is also possible that BitSpend employees have been arrested for "money laundering" charges for appearing as a currency conversion service to the authorities, in a similar situation to what happened with MtGox initially. Although I consider this less likely.

What I think is least likely is that BitSpend employees have run off with the BTC that their website got from payments to orders that have been placed around or after their bank accounts were seized, although it is unfortunately possible.

However do consider the situation. Do consider that it's possible that BitSpend has not provided updates simply because they have been unable to.

Consequently, I expect that they will be active again and will be refunding everyone's money within the next 30-60 days. However, I can not be sure. If they have been arrested for frivolous money laundering charges, it may take much longer, as their equipment may have been ceased as well(?).

It is also possible that I can go visit this address that was on my packaging slip, which I expect is an address of an employee, and casually ask questions, to potentially get this mystery resolved, in the coming week. As I think my rebate card may have been accidentally mailed there, anyways. (This was my mistake, not their doing) If I can go, I will attempt to take some video or something to settle the case.

Cheers.

~Re