Adzilla.com has reportedly liquidated assets and shut down operations. A note on the ISP ad targeter’s Web site reads:

“We have stepped out for a little to develop new solutions and services to delight users and enhance the online ecosystem experience. Please look out for our next evolution…”

That might be wishful thinking. Pressure from congressional scrutiny and telecom operators, as well as the sudden departure of Adzilla CEO Toby Gabriner, apparently left the company with few options besides laying off its workforce and shutting down.

Adzilla may possibly be planning a move to the U.K. to offer its ad targeting there. The question is whether the company has enough capital left to refocus the technology on a more conventional business model.