Official: vb.ly Link Shortener Seized by Libyan Government
techyum.com
techyum.com
http://en.wikipedia.org/wiki/Human_rights_in_Libya
"We intended vb.ly to be a link shortener that celebrated tolerance [...]". And so you hosted it on a Libyan domain name!
"While letters ‘vb’ are quite generic and bear no offensive meaning in themselves, they’re being used as a domain name for an openly admitted ‘adult friendly URL shortener’. Now, had your domain merely been a URL shortener for general uses similar to bit.ly (as you claim) there would have been no problem with it. It is when you promote your site being solely for adult uses, or even state that you are ‘adult friendly’ to promote it that we as a Libyan Registry have an issue."
That said, the value of .ly domains definitely just dropped.
Watch what bit.ly does - likely nothing right now. If they get warning like vb.ly says they did, we will hear about it, and then every .ly owner has a problem.
Obviously, if you buy a domain from an old-school ultra-orthodox Islamic dictatorship, you should expect to follow an extra set of laws to please them. The fact that they then decided to build a "sex-positive link shortener" company around it is just astounding.