RegisterFly's web site went offline on Tuesday, Netcraft reported on March 6. According to a post on registrerflies.com the same day, the site had been down because CEO John Naruszewicz and Vice President Glenn Stansbury had been moving it over to a new server in order to transfer it away from former CEO Kevin Medina.

On February 12, 2007 Kevin Medina was ousted from the company and was accused of using corporate accounts for luxuries, which eventually led to the loss of 75,000 domain names in January 2007 due to failure to remit registry fees. RegisterFly customers have since been flooding forums to complain that they were unable to manage or transfer their domains.

On February 21, 2007 ICANN sent a letter to RegisterFly indicating a Notice of Breach of its Registrar Accreditation Agreement, gave the registrar 14 days to cure the breaches and required RegisterFly to allow ICANN officials to inspect and copy its records.

RegistryFly refused to comply with ICANN's request for audit but on March 1 its lawyers sent a letter to the Internet governance body that the refusal "should not be construed as my client's unwillingness to cooperate with ICANN but as evidence of their continuing efforts to service their customers."

In a second letter from March 2, 2007 ICANN set out additional breaches and provided notice that it would file a suit against RegisterFly in the United States District Court for the Central District of California. ICANN said that it would seek a temporary restraining order requiring RegisterFly to turn over the data requested and to compel an emergency audit of its books and records.

In response to ICANN's request on March 5, 2007, RegisterFly provided a copy of domain name registration data, which ICANN will analyze for integrity and completeness.

Yesterday the registerflies.com forum posted an update, according to which RegisterFly has provided ICANN with all the required data. The registrar is currently in operation with 20 people answering phone requests and about 15 other staff members working on support related issues and ticket backlogs. Registerflies.com warns RegisterFly customers to change their password in order to prevent any future unsolicited access to their data.

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