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Who Needs SOPA, Anyway? The FBI Shuts Down MegaUpload...

Thursday, January 19, 2012
by  paul

Updated, 6:30 am PCT, Fri: The sites for the Justice Department, RIAA, MPAA, Universal Music Group and potentially others were attacked in retaliation for the MegaUpload takedown on Thursday.  However, as of Friday morning, only the Universal Music Group site (universalmusic.com) remains down. This will be rocky; more as that situation develops. 

Having trouble ramming difficult legislation through Congress? There's always another option: huge guns.    

 

On Thursday, the FBI and other US-based law enforcement officials effectively shuttered MegaUpload, while detaining top executives at the company.  MegaUpload founder Kim Schmidtz, aka Kim Dotcom, and other top executives at MegaUpload have been arrested for operating what has been billed a massive, copyright-infringing, racketeering, and money-laundering operation.  At last count, 7 were indicted, with the New York Times reporting that 3 executives remain at large.

 

 Full indictment paperwork

 

In classic SOPA fashion, the arrests and seizures were made outside of the US, but directed from inside the US.   That is, the arrests were made in New Zealand, according to early information, and MegaUpload is a Hong Kong-based enterprise.  

 

 Also check out: "This Is The Contract Will.i.am Signed With MegaUpload..."

 

Sounds suspect, and the timing couldn't be worse.  Earlier this week, sites like Wikipedia and Reddit went dark to protest the over-reaching, heavy-handed aspects contained in SOPA.  But now, it's as if that never happened: in this case, US-based enforcement authorities pointed to a long-running investigation and grand jury indictment, though MegaUpload appears unaware of any due process according to attorney Ira Rothken.  MegaUpload owner Kim Dotcom has repeatedly pointed to compliance with takedown requests, though Hollywood, the RIAA, and other copyright owners obviously felt otherwise.

The MegaUpload site has been down since Thursday afternoon.

 

Two companies were specifically named in the indictment, unsealed Thursday afternoon in Northern Virginia: Megaupload Limited and Vestor Limited, both of whom were accused of damages exceeding $500 million in pirated films, music, games, and other assets.  In its indictment paperwork, the all-powerful Department of Justice noted that MegaUpload was "generating more than $175 million in criminal proceeds and causing more than half a billion dollars in harm to copyright owners."

This is one of the largest federal indictments of its kind, according to the FBI.

More as it develops.

 





  • Comments Closed
    Comments (37)

    @madktc Thursday, January 19, 2012

    Looks like Anonymous responded by shutting down justice.gov (justice.gov) and Universal Music (universalmusic.com).

    Feels like everyone is losing.  Is it too late?


    nope... Friday, January 20, 2012

    How is justice.gov "losing" from their website being hit by a few botnets? They don't use their website to sell t-shirts. Those sites are just static presentations. They are not crusial assets.

    That's all Anonymous can do - attack second and third class assets...


    @madktc Friday, January 20, 2012

    That site functions more than a static presentation.  I'm sure very few people actually know what that site is capable of doing.


    Yeah Saturday, January 21, 2012

    It is capable of logging the ip addresses of the script kiddies that use LOIC against it.


    Dalton Priddy Thursday, January 19, 2012

    The war for the rights of creative content and to protect their abuse is here.

    Let this be a warning to Google(YouTube), Facebook and other Big Data sites, the writings on the wall...


    visitor Thursday, January 19, 2012

    there went riaa.com too....


    gaetano Thursday, January 19, 2012

    Question: What would have happened if New Zealand didn't agree to the extradition/rendition?

     


    @xocherrygirlxo Thursday, January 19, 2012

    Oh Shit! I love MegaUpload!


    bout time Thursday, January 19, 2012

    Kudos to the FBI

     

    i'll defer my question: What took so long!?


    Paradox Thursday, January 19, 2012

    Unrelated news but how come a site that is all about "DIGITAL MUSIC NEWS" doesn't report the fact that the revolutionary MUVE MUSIC has surpassed 500,000 paid subscribers?

    Revolutionary because it is bundled into an Android mobile phone service (unlimited music downloads, unlimited talk, text and data).  

    And for a prepaid phone company that only has 5 million subscribers, 10% of their users are now on MUVE MUSIC.  It was launched nation-wide only 6-7 months ago.

     

     

     


    brooklyn habitat Thursday, January 19, 2012

    Hey @Paradox, try reading the site more.  They have.


    mdti Friday, January 20, 2012

    Read on a french news site(quick translation)

    "The hacker collective Anonymous has annouced having shut down the websites of FBI, DOJ , UMG and RIAA in reply to the shutdown of megaupload"....


    As usual, guns never solve anything, even in the digital world apparently.


    mdti Friday, January 20, 2012

    I can't access RIAA and UMG websites this morning (10h10 GMT+1)..... FBI and DOJ were more reactive in solving the access problems.


    James Friday, January 20, 2012

    "The sites for the Justice Department, RIAA, MPAA, Universal Music Group and potentially others were hacked"

    Thought it was just a DDoS attack - were they actually hacked?


    X Friday, January 20, 2012

    Nah, just a couple of botnets:

    https://en.wikipedia.org/wiki/Botnet

     


    James Friday, January 20, 2012

    "In classic SOPA fashion, the arrests and seizures were made outside of the US, but directed from inside the US.   That is, the arrests were made in New Zealand, according to early information, and MegaUpload is a Hong Kong-based enterprise."

    Apparently the Megaupload servers are in the U.S, hence why they were legally able to be taken down. So, in answer to your headline question, "Who needs SOPA?", SOPA would have been needed if the servers had been located outside the U.S


    Ignacio Friday, January 20, 2012

    But this is a global co-located server architecture?  But also the arrests were made in New Zealand, not US?


    James Friday, January 20, 2012

    The servers are apparently located in Virginia.

    Extradition between countries is not at all unusual.


    Visitor Friday, January 20, 2012

    interesting and pretty spot-on summation:  http://popuppirates.com/


    Egregious acts Friday, January 20, 2012

    It's time we faced and admiitted it. Our Republic has been taken over by a bunch of mafiosa thugs who do what they want regardless of the law.  The DA perjured himself in front of congress and is responsible for many US citizen and Mexican deaths through their "bothched" Fast and Furious guns for drugs operation in Mexico.  Our "President" signs away centuries of freedom like a thief in the night as the country was ringing in the New Years with the NDAA.  Little kids and up are groped by zombie powertrip crazy TSA pedofiles (highest criminal and pedo rate in service besides TSA).  And on and on and on.


    I'm so glad Hollywood and Music Exec criminals (how much bailout did the magical Holy Wood receive?) are having their arses wiped by our supposed protectors........


    Al B Sure Friday, January 20, 2012

    The article title got it right.  But your article itself gets confused.

    "In classic SOPA fashion", "But now, it's as if that never happened".

    You're saying this bust is another symbol of everything people dislike with SOPA??  You're Very wrong Paul.

    Google et al hate SOPA because it makes them responsible for policing pirates.  It makes Google liable for returning search results that link to a site which distributes pirated material.  What happened with Mega was the FBI, i.e. the people whose JOB it is to fight crime, did their own policing and engaged directly with the criminals - rather than scolding people who mentioned where the criminals work.

    Megaupload didn’t have links to other sites hosting  illegal files. They Hosted them directly!  What this implies for the locker industry is a different matter, which is TBD.  That discussion - are online lockers legal or not, is not related to SOPA.  At least not the parts of the bill that are making Google and free speech advocates angry.

    You're getting two separate issues confused together in your article.

    As long as the agencies who are created to fight crime continue to do this type of crime fighting, there is a much weaker argument for the type of over-reaching, free speech restricting laws that SOPA is.


    wrong Friday, January 20, 2012

    Money laundering is not free speech. Go pay a visit to your local library, borrow a couple of books. They will be so happy to see you there.


    Wronger Friday, January 20, 2012

    Money laundering?  Doesn't ignorant-troll have a bridge to crawl back under somewhere?  Why don't you get moving...


    Wikipedia - Friday, January 20, 2012

    Kim Schmitz (born January 21, 1974 in Kiel, Germany), also known as Kimble, Kim Dotcom and Kim Tim Jim Vestor, is a German computer criminal and businessman who has generated much publicity during the dot-com bubble and was convicted of credit card fraud, computer fraud, insider trading, and embezzlement in its aftermath.

    https://en.wikipedia.org/wiki/Kim_Schmitz

     


    Al B Sure Friday, January 20, 2012

    Money Laundering has nothing to do with free speech. What the hell are you talking about?

    The SOPA legislation limits our ability to publish info on the interweb.  Google doesn't want to get caught up in the "piracy war" just for telling people what the rest of the the web looks like.  That's why it's busted.


    Megaupload were housing stolen goods and selling ad space on that house.  That's why they're busted.

    The two issues are not related.  Stop being stupid and confused. Sorry- but same for the guy who wrote this article.


    so naive Saturday, January 21, 2012

    You are up for a big surprise when you find out that Google settled with the US government for ~$500 million in order to protect the companie's ten top people from jail time.


    Al B Sure Sunday, January 22, 2012

    Google has settled with the Govt numerous times (as has facebook and microsoft).  I'm not surprised at all.

    What's your point?

    MegaUpload was doing nefarious acts and was brought down with out any need for the overreaching Sopa legislation.  That's my point.

    FYI Great news coverage of Megaupload CEO here:

    http://www.youtube.com/watch?feature=player_embedded&v=-QLGQtEnPy0


    Great news Friday, January 20, 2012

    Thank you FBI. Glad to see my tax money spent the right way. I am sure we will hear about more criminal cases once your techs go through all that data.

    I am also glad to see that all Anonymous can do is attack a couple of websites with botnets. Big deal. Who needs to read RIAA's website, anyway? It's not like it's e-commerce. Those script kiddies are not really that dangerous. Who knows, maybe they will get bored at some point and go outside, find a boy/girlfriend.


    @HamptonH Friday, January 20, 2012

    These are modern-day political prisoners.


    Corey Saturday, January 21, 2012

    We elect a statist authoritarian with tolitarian tendencies and we are surprised by these actions by the FEDs???

    Fortunately we will have the chance to remove this wanna be dictator from power this year.


    Faces of the crooks Saturday, January 21, 2012

    You can see photos of the MegaUpload mafia gang here:

    http://cryptome.org/2012-info/megaupload/0051.htm


    Al B Sure Sunday, January 22, 2012

    Good coverage here of the CEO Kit Dotcom:

    http://www.youtube.com/watch?feature=player_embedded&v=-QLGQtEnPy0


    @TX_1 Saturday, January 21, 2012

    The real reason? 

    Competition.


    ATS material! Sunday, January 22, 2012

    You are actually suggesting that the FBI works for the Pirate Bay? Because that was MegaUpload's main competitor.

    Quite a conspiracy you got there.


    dmtaylor247 Monday, January 23, 2012

    sopa sucks goats balls, now if you don't mid I'm gonna go watch free movies online


    2/2/2 Tuesday, January 24, 2012

    Besides mid, watch out for your bass and highs.


    Check this out: Tuesday, January 24, 2012

    FBI MegaUpload Search Photos and Video

    Kim Dotcom had a Mercedes jeep with "POLICE" written on the back plate...


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