File-sharing giant Megaupload was shut down Thursday, several of company executives were arrested and charged with violating piracy laws, and more than $50 million in assets were seized. The news comes just a day after the vast majority of the Internet protested against SOPA/PIPA.
Megaupload is a file-sharing site where users can backup and share files of any format. Some users use the website to share photos of their children with friends and others use it to share illegally downloaded media. Megaupload never has condoned piracy and have a long history of complying with the DMCA, which is why this news comes as such a shocking surprise.
Kim Dotcom, real name Kim Schmitz, Megaupload’s founder, is said to have made $42 million from Megaupload in 2010. She was one of the four executives arrested Thursday along with Bram van der Kolk, Finn Batato, and Mathias Ortmann. Julius Bencko, Sven Echterach, and Andrus Nomm have also been indicted, but they remain at large, officials said.
The government’s decision to take down Megaupload was years in the making. Megaupload employees knew the site was being used for the distribution for illegal goods and only actively took action when copyright holders threatened legal action.
According to the MPAA, “Megaupload.com is the largest and most active criminally operated website targeting creative content in the world,” they said in a statement. “This criminal case, more than two years in development, shows that law enforcement can take strong action to protect American intellectual property stolen through sites housed in the United States.”
An hour after the indictment was announced, hacktivist group Anonymous attacked the websites of the Department of Justice, Universal Music Group, RIAA, U.S. Copyright Office, and MPAA in retaliation for the 13th most popular website getting taken down based on accusations. Anonymous claimed responsibly for the attacks on their Twitter account.
At the moment, millions of users who used the website to legitimately backup their personal digital belongings are left in a dark. There was a pricing structure implemented that allowed users to pay for faster downloads and increased storage. It is unsure if they will be compensated.