The failure of the site has been attributed more to timing than anything, with the company being hit with the passing of the UIGEA in the autumn of 2006. It proved too large an obstacle for the infant company to overcome.
Chan Poker are currently looking for a site to take on its player database as well as carrying over the loyalty points earned by their players. A press release from Chan Poker read as follows:

“We are sad to inform you that Chan Poker will be ceasing operation effective this Thursday, August 21, 2008. Effective immediately we will no longer be accepting deposits. On August 21 our poker clients will be disabled.

If you have a cash balance with us rest assured that all withdrawal requests will be honored and promptly processed. To facilitate timely withdrawals, limits for certain withdrawal methods have been increased. We will make every effort to accept withdrawal requests through our website for as long as necessary however we strongly advise submitting your request as soon as possible. To initiate a withdrawal now please follow this link to go to your account. Please note that once final withdrawals are processed your account will be automatically closed, no further action is necessary.

The final $50 daily freeroll will be held Tuesday, August 19, 2008. We will not be holding any additional weekly Red Orange Freerolls.

We are actively seeking a partner to provide poker software and honor all Chan Poker player point balances for those that wish to continue playing online poker. We will keep you informed of developments on this front.

As always, if you have questions or concerns please don't hesitate to contact us at support@chanpoker.com.

Warm regards,
Chan Poker Customer Support”