(September 2018)
A sinkhole redirects or blocks traffic meant for a destination. They are used by the security community to stop botnet traffic, phishing and other bad activity.
There are many ways to create a sinkhole. An ISP can simply divert traffic from the IP address nameserver you see in Whois to another. A company (or the government) can also go through the courts to get control of a domain name and then change its nameservers.