Essentially, Ivey is sitting out the WSOP and is suing Tiltware, who handles the money for Full Tilt Poker, as US based players haven't been paid since Black Friday hit.
Ivey was one of the co-founders of the site, had stake in the software, and was a sponsored Pro. For him to sue them is sending major waves. Tom Dwan allegedly played Day 1 without his FTP patch. Todd Brunson also alleges that Mike Matusow was dead quiet last night at a social gathering.
There are rumors the guy behind Tiltware may be involved in an embezzlement scam. This seems to be par for the course in the Online Poker world ... besides the highly publicized cheating scandal on AP/UB, many sites have shut down and money never found its way back to players, with Eurolinx being one of the ugliest in recent history.
Until a US regulated poker room is opened, these waters won't be safe. At least the biggest shark around, Phil Ivey, is standing up for the rest.