Earlier reports suggested that Demonoid was contacted by the CRIA, but with Demonoid's return, fiction has become fact. Demonoid reports: "We received a letter from a lawyer representing the CRIA, they were threatening with legal action and we need to start blocking Canadian traffic because of this."
The bad news of course is that Demonoid is now unavailable to Canadians. Unfortunately it is not the first time an anti-piracy organization has effectively shut down access to a part of the BitTorrent community. Earlier this week Isohunt had to ban US users from its trackers, and last month TorrentSpy blocked access to US users, both by pressure from the MPAA.
News source: TorrentFreak