Well, it seems that they are still at it. I'm at work right now but I will be on the phone with some professional who can help mitigate this and stop it.
Update:
Magically, yesterday the attacks ceases. I wasn't sure if what we implemented worked or not. However, two players join our "test" server and immediately start asking to speak to Kainzo saying thye are the owners of Craftlandia.
I announce my presence and ask how I can help them. They state that "spunkiie" is no longer an admin of CraftLandia. Their only request is that we apologize to their community and to remove all defamation stating they are linked. A little while after the two left, the DDOS resumes.
Line 5578: 2012.08.12 16:13:42 <Dorgado> spunkiie was expelled from the staff
Line 5580: 2012.08.12 16:13:45 <Dorgado> ricardo = admn
Line 5585: 2012.08.12 16:14:38 <Dorgado> no, spunkiie was removed from staff
Line 5649: 2012.08.12 16:22:23 <Dorgado> kainzo, know ziden ?
Line 5655: 2012.08.12 16:23:04 <Dorgado> he is a perfect lier
Line 5657: 2012.08.12 16:23:34 <Dorgado> he was deined to entry on craftlandia staff
Line 5685: 2012.08.12 16:26:51 <Dorgado> craftlandia is much envied in Brazil, many trying to do negative things
Line 5692: 2012.08.12 16:28:00 <Dorgado> kam, fbi not have jurisdiction in brazil
Line 5695: 2012.08.12 16:28:40 <[Crusader]Kainzo> What is it that you want from me, Dorgado?
Line 5701: 2012.08.12 16:29:14 <Dorgado> kainzo, just say that we are not involved
Line 5756: 2012.08.12 16:35:36 <Dorgado> I came to ask you to remove the entry from your site, is a post that contains a false accusation
Line 5762: 2012.08.12 16:35:56 <Dorgado> you're publishing something false
Line 5773: 2012.08.12 16:38:06 <Dorgado> ok, thank you for your attention, lie does not get you anywhere
Line 5783: 2012.08.12 16:39:00 <Dorgado> yes, we create it to response your post only
Line 5816: 2012.08.12 16:42:32 <Dorgado> again: spunkiie removed from staff
Logic errors:
1) By removing Spunkiie they admit that he was doing illegal activity. Perhaps his past catching up to him?
2) All historical research proves that Spunkiie is not a mere admin but the owner of CraftLandia
3) Thinking that they can silence a crowd of 20,000 players because they can throw money at Curse/Bukkit/MCF
4) The DDoS stops, "meeting" occurs asking for us to remove CraftLandia. They leave the DDOS continues.