Megaupload.com Taken down by the feds, 7 charged

The Federal Bureau of Investigation (FBI) has shut down one of my most popular file-sharing websites, and, one of my favorite, MegaUpload.com.  The FBI announced the arrest of four of the people behind the MegaUpload.com.  MegaUpload, which is based in Hong Kong, is one of the many popular online file hosting websites. It lets individuals upload files—anything from a document to a digital movie—and provide Internet links that other individuals can use to download a copy. Lawyers for MegaUpload couldn’t immediately be reached.

A total of seven people have been charged with online piracy crimes in an indictment unsealed in northern Virginia. Four of those suspects are already in custody, authorities had said. The MegaUpload.com website, which was available earlier  in the morning on Thursday, appeared to no longer be online later in the day.  The four were arrested in New Zealand.  The Federal agents and other law enforcement agencies, then swiftly started to search bank records and data centers, were the servers are located.

“The fact is that the vast majority of mega’s Internet traffic is legitimate, and we are here to stay. If the content industry would like to take advantage of our popularity, we are happy to enter into a dialogue, the website reads in part.”

The Department of Justice paints a different picture.

According to the bill of indictment, MegaUpload is accountable for at the least $500 million in losings for the owners of the rights of first publication in hand.

The bill of indictment addresses the company “a worldwide criminal organization whose members engaged in criminal copyright infringement and money laundering on a massive scale.”

Investigators estimate that MegaUpload’s piracy business has earned them more than $175 million, according to the indictment.