There is an update at the bottom of this page.
It appears from a report on TorrentFreak, that Demonoid has been shut down by the Canadian Recording Industry Association (CRIA). The torrent sharing site, Demonoid, is a site of heavy peer-to-peer (p2p) activity that involves the sharing and distribution of torrent files. The problem is that there is confusion as to if this story is even true.

Why this could be true:

According to TorrentFreak, the founder (known as "Deimos") has been reported to not be answering phone calls, and it is likely that the site is going to be down for quite awhile. If any of this is true, then it is doubtful in my mind that the site will make a quick comeback. There is confusion as to what is really going on. TorrentFreak wrote this on their blog a few hours earlier:
TorrentFreak contacted some of the Demonoid administrators, but they are not sure what happened either. It is certainly possible that Demonoid’s Canadian ISP pulled the plug after being pressured by the CRIA. The Demonoid server is still pinging, but the ISP could have firewalled the everything after they received some serious legal threats. Deimos, the founder and the head admin of the site is unreachable and has not responded yet.
Why this could be false:

According to this site TorrentFreak is lying and spreading rumors:
Ok folks, here it is. Demonoid is down. It has been for aroun 18 hours. The reason is down is unkown. It hasnt been RAIDed, shutdown, terminated, deleted, burned, mamed, or thrown under a bridge. There have been speculation as demonoid.com whereabouts. Well the rurmors are false. A no name site in Netherlands has a blog about Demonoid.com being down. As I don't speak douche, I can not translate. However TorrentFreak Decided upon there own free will to further spread this and rumors. Torrent freak has known to be a sleazy site they post false rumors and hope they turn out true. They do this in order for money and popularity. Quite sad isn't it.
I am not sure what to believe as it would be no shock to me if Demonoid does go down. It also would be no surprise if the TorrentFreak story is completely false. If this is a false story by TorrentFreak, it would certainly seem like a reputation killer for that site.

The facts:

Demonoid is a site designed for BitTorrent p2p activity, and has been for a number of years. The site has been closed to the public, with the exception of a day or more during the month when the site allows new users at random. Invitation are also another method of joining the site.

The Demonoid site has been down for at least 24 hours. The site has also shut down for a short period of time as well in the past. A serious problem is that torrents are being traded that have copyrighted music, software, and more. This is primarily the reason why some countries are not too fond of Demonoid.

I will reserve judgement about the whole situation until after more information becomes available. This story is sure to progress further, and Tech In Demand will bring you the latest.

Update 1: 9-26-2007 @ 6:57 PM EST.

There is still no new information about the status of Demonoid. I'm still on the search for some answers. If you have any information, please email me at James.Mowery@TechInDemand.com.

Update 2: 10-1-2007 @ 4:18 PM EST.

There is a major update to this story, written here on Tech In Demand.