The English-language online newspaper is notorious for its write-ups of Moscow's underworld scene -- including stories of drugs and prostitution -- mixed with political columns, the Moscow Times reported Monday.

News that four inspectors from Russia's Federal Service for Mass Media, Telecommunications and the Protection of Cultural Heritage visited The eXile's offices a week ago, caused panic among funding sources, however, an editor said.

"News of their visit had our investors fleeing instantly," co-editor Yasha Levine told the Times.

"The paper is dead, unless a miracle happens," said Mark Ames, The eXile's founder.

The inspectors said they received a complaint that The eXile "mocks and humiliates Russian traditions," Ames told the Times.

A letter to The eXile says the inspectors will announce an initial decision on the case on Wednesday.