hey lens,
I just got done talking to Sean... seems it was just a "technical problem" and i may have jumped the gun.
With that said - Last time I checked they were at 5000 listed sites (down from 15000).  recently the pages were loading ass slow...like they were trying to rate shape.
Then all their ads disappeared - and their surfer pages redirected to their webmaster resource page.
Now you can't get anything when you type in any of the domain names that they own.  
 
www.sexhound.com  www.sexhound.net  www.vcommunities.com 
But they claim "(they're) still here"
well that's all i know...I guess now it's just a wait and see.  
~Brett