Their blog shows that they lost $12k USD from an assumed-to-be Russian hacker. This may be the case, and I hope they have the backup funds to supply the lost/stolen BTC that was in that $12k worth. Though this is not the first time an attack has occurred with them. Last time it occurred (a year ago I believe) it was apparently a Russian then too (possible scapegoat stereotype?). This instance, they state that the MO of the supposed attacker shows they have mediocre tech skills, thus leading me to question two things: 1) If the attacker has mediocre tech skills, why are the security protocols of BitInstant, their domain registrar, and any other entity involved in management of funds, servers, domain access, etc. so sub-par? 2) Is this perhaps a facade created by the BTC mogul company to slip away with $12k of ill-gotten funds from would-be customers (especially given that so many customers never will levy civil/criminal charges against the company for lost funds, given the method of payment both incoming and outgoing are so easily debunked in a court of law, and many people use BTC for illicit payments/laundering)?
Either way...BitInstant seems compromised IMO. I advise finding another BTC vendor. btcquick.com and bitfloor.com seem to be the best options as of now. Otherwise, use local-btc or another forum for meet-and-greet fund transfers.
Hope I may have helped to some degree! (:
All the best in getting that coin!