MegaUpload Shut Down by the Feds, Founder Arrested

[awdrifter]

MegaUpload, one of the largest file-sharing sites on the Internet has been shut down by federal prosecutors in Virginia. The site?s founder Kim Dotcom and three others were arrested by the police in New Zealand on request of US authorities.MegaVideo, the streaming site belonging to same company and 16 other domains connected to the Mega company were seized as well.

An indictment unsealed today by the Department of Justice claims MegaUpload has caused the entertainment industries more than $500 million in lost revenue and generated $175 million ?in criminal proceeds.?

In addition to MegaUpload founder Kim Dotcom, another six alleged members of the Mega ?conspiracy? were charged in the indictment:

? Finn Batato, 38, a citizen and resident of Germany, who is the chief marketing officer;
? Julius Bencko, 35, a citizen and resident of Slovakia, who is the graphic designer;
? Sven Echternach, 39, a citizen and resident of Germany, who is the head of business development;
? Mathias Ortmann, 40, a citizen of Germany and resident of both Germany and Hong Kong, who is the chief technical officer, co-founder and director;
? Andrus Nomm, 32, a citizen of Estonia and resident of both Turkey and Estonia, who is a software programmer and head of the development software division;
? Bram van der Kolk, aka Bramos, 29, a Dutch citizen and resident of both the Netherlands and New Zealand, who oversees programming and the underlying network structure for the Mega websites.

Dotcom, Batato, Ortmann and van der Kolk were arrested today in Auckland, New Zealand, by New Zealand authorities

Just a few weeks ago MegaUpload founder Kim Dotcom told TorrentFreak that his Mega ventures have nothing to worry about, as they operate within the rules of the law.

?Mega has nothing to fear. Our business is legitimate and protected by the DMCA and similar laws around the world. We work with the best lawyers and play by the rules. We take our legal obligations seriously. Mega?s war chest is full and we have strong supporters backing us,? Dotcom said.

Breaking story, more to come.

http://torrentfreak.com/megaupload-shut-down-120119/

This really shows the the SOPA and PIPA protests are useless. The US government will do anything the MAFIAA wants it to do. Honestly I'm surprised US file hosting sites lasted as long as they did, most torrent and ed2k linking sites moved their servers and domain names outside of US. It's time for the file hosting sites to follow suit, fighting this through legal means is useless. These sites are no match for the MAFIAA when it comes to lobbying.

 

[shellygrrl]

NOT COOL.

 

[pepitko]

Arrested in New Zealand at the request of US authorities? How does that work, US doesn't have jurisdiction in New Zealand.

 

[Evel]

According to the Department of Justice, the individuals named above face a maximum penalty of 20 years in prison on the charge of conspiracy to commit racketeering, five years in prison on the charge of conspiracy to commit copyright infringement, 20 years in prison on the charge of conspiracy to commit money laundering and five years in prison on each of the substantive charges of criminal copyright infringement.

You have got to be kidding me.

 

[neutron]

So, AFAIK, you must go to Russia if you want to be a proper pirate.

 

[hajj]

Arrested in New Zealand at the request of US authorities? How does that work, US doesn't have jurisdiction in New Zealand.

Interpol arrest warrant? Other nations do the same, see Assange. Also chances for extradition depend heavily on kiwi law.

You have got to be kidding me.

Racketeering and money laundering are odd ones, but money laundering charges were used against poker sites in 2011.

 

[watisdis]

Anonymous has taken down DoJ in response to Megaupload being taken down. Try it.

www.justice.gov

 

[katwalk]

What the government doesn't seem to realize is they are fucking stupid with internets and they are going to piss off people who aren't.

 

[TroyWK]

Kill person - 3 years prison

Own a file hosting website - 20+ years

How I love the legal system......

 

[watisdis]

The DOJ website glitches came soon after various Twitter accounts associated with Anonymous took aim at the agency.
Anonymous's favorite weapon for these attacks is what's called a "distributed denial of service" (DDoS) attack, which directs a flood of traffic to a website and temporarily crashes it by overwhelming its servers. It doesn't actually involve any hacking or security breaches.

"One thing is certain: EXPECT US! #Megaupload" read one tweet from AnonOps that went out mid-afternoon.
One hour later, the same account tweeted a victory message: "Tango down! http://universalmusic.com & http://www.justice.gov// #Megaupload"

It was the largest attack ever by Anonymous, according to an Anonymous representative, with 5,635 people using a networking tool called a "low orbit ion cannon." A LOIC is software tool that aims a massive flood of traffic at a targeted site.

Universal Music's website also went down Thursday afternoon. The music company had been locked in a legal battle with Megaupload over a YouTube video that featured many of Universal Music's signed artists promoting Megaupload's site.

The websites of the Recording Industry Association of America and Motion Picture Association of America also went down Thursday afternoon. On Twitter, AnonOps took credit for the crashes.

The Anonymous attack came soon after the DOJ announced the indictment of seven individuals connected to Megaupload for allegedly operating an "international organized criminal enterprise responsible for massive worldwide online piracy of copyrighted works."

http://money.cnn.com/2012/01/19/technology/megaupload_shutdown/index.htm?source=cnn_bin

So they're going on a killing spree.

 

[MWF]

Anyone in the slightest bit concerned that it's about now they switch on SkyNet?

 

[Cryptopygia]

And just like that, a new file sharing site pops up...

The funny part: It's MegaUpload...

megavideo.bz

(Chances are the new server's being overwhelmed with traffic...)

/Does anyone else think that this was purposely timed to coincide with the day after the SOPA/PIPA protests?

 

[_HighVoltage_]

Anyone in the slightest bit concerned that it's about now they switch on SkyNet?

I had the exact opposite thought...what if MegaUpload, and all the torrent sites become like SkyNet - part of the cyberspace. You can arrest their owners, but there is no OFF switch?

 

[devil500]

Freedom my ass...

 

[prizrak]

I find it funny that they were taken down by the **AA while Swizz Beatz is (was?) their CEO. Sure **AA is about protecting artists....

 

[Firecat]

An indictment unsealed today by the Department of Justice claims MegaUpload has caused the entertainment industries more than $500 million in lost revenue and generated $175 million ?in criminal proceeds.?

This whole notion of "lost revenue" is at best, dishonest...and at worst, complete bullshit.

 

[Dr_Grip]

I really dislike the way this whole "copyright legislation" thing is going. Still, anyone arresting Kimble gets my blessing (pro tip: If you are in the filesharing business, don't own a car with a vanity plate reading GUILTY).

 

[AiR]

Arrested in New Zealand at the request of US authorities? How does that work, US doesn't have jurisdiction in New Zealand.

Dangle a vaugue promise of a "free trade agreement" in front of the Kiwis and they do as they're told apparently. Of course with the US going down the crapper, such machinations won't work for long. I'm interested in what legislation the Kiwi police is leaning on however.

Edit

More than 70 police, including the armed offenders squad, searched Coatesville's $30 million "Dotcom" mansion and nine others in Auckland early this morning as part of the swoop.

Wormald said it was a complex operation that was planned with the help of four FBI agents who flew to New Zealand this week.

"We were aware there were a number of people there. We had a range of issues we had to deal with...in getting from the gate to the door. It wasn't simply a case of going up and knocking on the door."

Wormald said there were at least 15 people at the home, including family, children and staff. There were security staff and bodyguards at the home.

A total of 18 luxury vehicles have been restrained and placed in the control of the Official Assignee. These vehicles include several top end Mercedes, a Rolls Royce Phantom Drophead Coupe and a 1959 pink Cadillac. Various artwork, electronic equipment and bank accounts were also restrained.

The vehicles are valued at around NZ$6m, while up to NZ$11m in cash was restrained in various accounts.

Wormald says today's operation was a successful one despite a less than straightforward entry to the Dotcom Mansion"

"Police arrived in two marked Police helicopters.

Wormald said today's arrests were the result of several months' co-ordination with the FBI and US Department of Justice.

"The FBI contacted New Zealand police in early 2011 with a request to assist with their investigation into the Mega conspiracy," Wormald said.

"We were happy to provide this assistance. Staff from OFCANZ and New Zealand police have worked with the US authorities over recent months to effect today's successful operation."

Congratulations New Zeeland tax payers, your government don't only bend over, but pay for doing so too.

If Megaupload is breaking the law when their users use the service, why isnt gun manufacturers breaking the law when their users use theirs? A man is stashing illegal things in the boot of his BMW, therefore BMW must be shut down. That's the logic in this case.

 

[Dr_Grip]

A couple of veterans from the German BBS scene point out that Kim/Kimble/Dotcom/Schmitz already used the same "business model" back in the nineties: He paid people (with hacked calling cards, i.e. at not cost) to upload Warez to his BBS and then made money from the downloaders.

Back then, and that is where it gets interesting, he sold out his suppliers and customers to the feds when he got busted.

If I had up- or downloaded anything from Megaupload I'd get a lawyer now. Kimble most likely has already sold you to the feds.

 

[Aston Martin]

Why are celebs on board with the site? There's only one reason why you use it.

We all know Kim's shady... But what a house