Pahani was arrested and in July 2009, then quickly released, but denied permission to leave the country. In February 2010, he was arrested again with his family and colleagues and put in Evin prison in Tehran, at which point, Franz Kafka rolled in his grave once more.
Another filmmaker who was arrested at the same time, Muhammad Rasoulof, was also sentenced to six years in jail. The Guardian notes that "Leading Hollywood figures including Martin Scorsese, Steven Spielberg, Francis Ford Coppola and Juliette Binoche condemned his arrest." Good on them, but since thousands of protesters with the international community rooting for them couldn't successfully defy the Iranian government, things still seem pretty bleak.
Panahi's official conviction was for "colluding in gathering and making propaganda against the regime." He does currently plan to appeal, so send good thoughts his way.
ยทIran jails director Jafar Panahi and stops him making films for 20 years [The Guardian]