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Megaupload Co-Founder Released On Bail

The co-founder of Megaupload has been freed on bail by a judge in New Zealand. Mathias Ortmann will be the subject of strict conditions including no Internet access. The US will now rely on a United Nations treaty to extradite the Mega team. Separately, it was revealed that the FBI remotely monitored last month’s raids and congratulated New Zealand police on their work.

Following his arrest almost a month ago, the co-founder of the now-defunct Megaupload file-hosting service has finally been granted bail.

Mathias Ortmann was expected to be freed following a January 26th hearing but that was delayed when information collected by the authorities on his finances fell short of Ortmann’s own estimates.

According to the FBI, Ortmann made around $14.5 million from Megaupload between 2005 and 2010, and an additional $3 million in 2011. His accounts, however, showed a total of $20.2 million, some $3.5 million more.

This morning, concerns over the 40-year-old, who was previously described as a serious flight risk by Prosecutor Anne Toohey, were overcome.

Ortmann, from Germany, was released earlier today and will now join his co-accused Bram van der Kolk and Finn Batato at the former’s Auckland home. Bail conditions for all three are strict and include a complete ban on Internet access.

Of those arrested in New Zealand following the raids in January, only Megaupload founder Kim Dotcom remains behind bars. He is due to appear in court next week.

In the meantime it has been revealed that US authorities intend to rely on a United Nations treaty aimed at combating international organized crime to extradite all the NZ-based members of the so-called “Mega Conspiracy” to the US.

While a lawyer working on behalf of the United States government admitted that no copyright offenses are specifically listed in the extradition treaty, he said that certain offenses which involve trans-national crime are covered by the country’s Extradition Act.

In New Zealand, crimes must carry a four year prison sentence to be deemed extraditable. Under the country’s Copyright Act, distributing an infringing work carries a five year maximum sentence. Nevertheless, some observers are predicting that due to its groundbreaking status, the extradition battle for the Megaupload defendants will be both complex and prolonged, and could even go all the way to the Supreme Court.

Separately, according to a report citing the latest issue of New Zealand Police’s ‘Ten One’ magazine, US authorities have congratulated local police on the raids they carried out last month.

“Feedback on the New Zealand operation has been extremely positive from our international law enforcement partners including the FBI and the US Department of Justice,” said Detective Superintendent Mike Pannett, who reportedly monitored events from the FBI’s command center in Washington.

As revealed last week, dozens of heavily armed police – some from elite anti-terrorist divisions – were used to arrest the operators of Megaupload in January.

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  • James

    How did the FBI congratulate the New Zealand police? New cars? Cash? Honestly, these Assholes should not interfere with another countries sovereignty.

    The NZ prime minister should be ashamed and the people of NZ need to put pressure on their government.

    • http://www.facebook.com/matthew.feringa Matthew Feringa

      John Key has no balls. Hes all about the money and will fuck anyone over to get what he wants. Lets hope the courts block the extradition

      • Guest

        No internet access??? WTF?

        Is he is forbidden electricity and water as well?

        These cunts are cunts.

    • Krozar

      Country? HA! America is the only real country.

      • Acanadian

        no.. america is a continent…

        • http://gene-poole.tumblr.com Gene Poole

          No, America is 2 continents.

        • Central American

          no.. america is 3 continents

        • CyberDjay

          Depend on what segmentation our model is based on!

          for me i agree with the 5 continent segmentation so america is 1 continent …

          :P

    • Fuusagov

      that’s so true… USA has to stick theyr nose everywhere. if they don’t like something, then they change it, and noone has the balls to say anything… can’t belive that we came that far… are we are USA gov slaves? wtf?

      • http://twitter.com/sheepodoom SheepODoom

        Well as soon as the world gets a clue the Land of the free has become home of the corrupt & greedy then DOES something. The United Corporate States imports 99% of it’s goods. Those much needed shipments of goods ENDS the riots will take out these elements of our government.

    • At

      “As revealed last week, dozens of heavily armed police – some from elite anti-terrorist divisions – were used to arrest the operators of Megaupload in January.”

      lol… why would you need an anti terrorist squad if you wanted to arrest kimdotcom?! the gov should be ashamed.

      • http://gene-poole.tumblr.com Gene Poole

        Because it sets the precedent for extradition under terrorist stricter laws. If you treat them like they’re a MAJOR THREAT, you can use the laws intended for dealing with MAJOR THREATS to deal with the (minor threats)

      • m j

        Why would you need full SWAT squads to break into houses of suspected pot smokers at 4am and shoot their barking dogs? For show. Cause they are bad ass. Y’know?

    • BBTUYM

      And yet like the US would ever let another country do that.

      • http://twitter.com/sheepodoom SheepODoom

        EXACTLY.. the GOP would SHIT if any nation sent their cops to arrest US Citizens for Non US Crimes. I for one would LOVE to see Dubya’s door kicked down & French Police storm in to arrest him for war crimes. That & Downloading a speech he made.

  • NZFAIL

    New Zealand just got rimmed by the FBI, DOJ and the rest of the US Government for a job well done.

    Well done New Zealand you f**king muppets. Not only are your politicians paid for by the US entertainment industry (3 strikes rule), but you bend over and grab your ankles while saying “ahhhhhhhh” when there’s a made-up investigation about a cyberlocker founder. That founder wasn’t killing New Zealand citizens or worldwide citizens…He wasn’t producing drugs. He had a platform and you guys decided to destroy it with the help of the US authorities. You utter waste.

    I’m enjoying my last “days” of being able to express myself freely on the Internet….Until the entertainment industry takes that away as well.

    Just a PS…. I paid money in your pockets by going to the cinema to watch “Safe House”. You don’t want to knowo where I sampled the movie first – It wasn’t the trailer you put on YouTube.

    • cluckin bell

      I wouldn’t be so hard on the New Zealanders…after all, when Captain America shows up, and no Vaseline in sight, what options does a peaceful kiwi have?! Showing the middle finger will just make it for enjoyable for Captain America.

    • Lawl

      And rimming isn’t even that great!

    • Nzslaves

      i agree. NZ gov are USA gov slaves.

  • zeitsuss

    “FBI remotely monitored last month’s raids and congratulated New Zealand police on their work.”…so, there we have it – only “remotely” to do with the US but, seeing that they as good as run the UN, they’ll have their extradition wish.

    • http://tiny.cc/ANoiXioNA-personal-info ANoiXioNA

      remotely…. they just watched….. I don’t see what all the fuss is about….

      Like when Bin-Ladin was killed : ) and Obama remotely watched….
      Wasn’t like Obama was in control …………………… oh wait !

  • Torrentper

    Megaupload Co-Founder Released On Bail http://torrentper.in/megaupload-co-founder-released-on-bail/

  • Sabel44

    Torrentfreak. Why are you not reporting things happening in france?
    Hadopi sending first batch to court.
    Anonymous hacking hadopi e-mail.
    E-mail reveal entertainment industry angry that hadopi published TMG report.
    ISPs sending bills to hadopi.
    Etc. etc. etc.

    Why this silence?

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  • Pizzed at 0bama

    Too bad the USA wouldn’t go after the Chinese that pirate cheap imitations.
    Oh, wait a minute, China would just show them the middle finger.

    • techanon

      With the amount of US bonds that china has, they have the amount of economic muscle to back that middle finger.

      • Guest

        They have the economic muscle to crash the US “economy”.

        But the Middle Kingdom always plays the long game.

        Who won the cold war? China.

    • http://pulse.yahoo.com/_IZ5BM5GNLA54OADSWGSXAMA7SY Jay

      Actually, they’ve arrested people on copyright grounds before. But it’s done nothing to stop the infringements.

      • Anonymous

        China just claims they arrest people to get the MAFIAA to shut up., Piracy is a huge business over there, if you’ve ever been to China you’ll see huge warehouses stacked to the top with counterfeit DVDs. Of course the MAFIAA hates this so they say “We want you to go do something about this now” and China says “Oh ok, we will” and then:

        “You said you would stop piracy there! Why haven’t you done it?”
        “Don’t worry we are”
        “You are doing it right?”
        “Yeah of course”
        “Just tell us the truth, you SERIOUSLY are trying to stop piracy?”
        “Yep!”

        • Bohbol

          US: “You said you would stop piracy there! Why haven’t you done it?”

          Middle Finger: “Don’t worry we are”

          US: “You are doing it right?”

          Middle Finger: “Yeah of course”

          US: “Just tell us the truth, you SERIOUSLY are trying to stop piracy?”

          Middle Finger: “Yep!”

  • Goosmoo

    I would expect “congratulations” if a terrorist had been killed, or if a high level mobster responsible for dozens of deaths had been captured. But it seems ridiculous to congratulate people for sending in *dozens* of police officers with guns into an unfortified mansion to arrest a few guys running an electronic storage locker.

    It’s a shame they’ve wasted so much money between the US and NZ (my guess is over a million dollars the past few years) investigating and arresting those guys, and they’ll waste even more in the upcoming year or so. It’s money that could be spent capturing child molesters, drug cartel kingpins, serial killers, and multi-billion dollar ponzi scheme con artists. Instead they continue focusing on a few people who allowed others to share files.

    All that money wasted, and what has it accomplished? Have people stopped sharing files and downloading? Of course not.

    Idiots.

    • Kr0nZ

      But us regular folks are not allowed to have money, just enough for the bare essentials to buy food and spend what’s left on their IP.
      If us regular folk have more than we need in the bank, we are deemed terrorists.

      Middle class died out a years ago, it now goes poor –> elite, because everyone (except the fat cats) survive these days by shuffling the credit card debt, and mortgages that will never be completely paid off. If you dont have those, your a terrorist

    • America

      They seem to be terrorists to me. Dotcom? That’s not a real name! They should have nuked them and damn NZ and whatever they think about it! This is serious paranoia business and we do it very well. -America

  • mark

    i’m still bewildered on why they were arrested. Wasn’t megaupload just a file transfer service? Like dropbox?

    • Danny

      Yeah but the mega team were about to release a music distribution platform that would but the RIAA members out of businsess as it offered 90% of the profits back to the artist. So the RIAA called their buddys in the FBI to instigate this shizzle and invent some evidence.

      • Rohe

        Come on. From all theories this is the most crazy one. It cost $40 to upload your music to iTunes. If you can’t do that, how in the world can you upload to something else? Making money has something to do being famous, not because its “forbidden” to upload. And many claim, that the “Megakey-concept” hadn’t worked because it was simply stealing Ads from other sites.

        As much I want them to be free for many reasons, lets stick to the facts.

        • Anonymous

          Apple keeps at least 30% of the salesprice on itunes (possibly more hidden in other various fees, it’s Apple after all)

          also, since it is Apple, it has very strict censorship, I’m sure the MAFIAA can easily interfere with new artists on itunes.

      • Rohe

        @Anon some guys who have success with youtube comedys use tunecore.com. They say the biggest problem is rather getting found by users not used to search for youtube-comedys/podcast. The upload wasn’t a problem with myspace.com for 5 years. They only asked for 10%. Nothing sold.

        Megauploads concept was to let the people freeload for watching ads. But you only make 0.1c per ad. What’s 90% of 0.1c? I don’t say it can’t work – 70% off itunes vs 90% off nothing doesn’t look like the big deal everybody is waiting for.

    • Rohe

      They claim some shady monkey business with money, NOT copyright related matters. Till today we didn’t see or hear any proof of that. They will present it at the extradition hearing. Legal specialists doubt that what they did was “money laundering”, at least not in the way the US sees it. And the US has very specific “elastic clauses” where you practically do “money laundering” when you buy stuff instead of paying taxes with exactly “that” money. Its insane.

    • T~shamika

      because this guy had a bad background and defrauded ppl then used the $ to set up a cyberlocker. Mafiaa did a secret investigation and didn’t tell mega about it and used this to justify the raids. They had 20 movies on there and asked mega to remove them. They disabled teh link and the movies remained. Mafiaa then searched for the vids later after prob reuploadin them and tehn said “they are under this link” we asked them to remove them be4. next fbi and mafiaa have orgy and raids happen

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  • http://www.joelle.de/ ekine

    When you are in New Zealand and in case you have any sort of problem, just call the FBI.

    • Bakapinkuu

      Yes, but the question is which orifice they’re connected to the US by.

  • Anonymous

    So it now becomes clear why they pumped up the charges to include organized crime and money laundering.

    If you can’t get them under copyright laws then file some bullshit charges to get them to the US under a UN treaty and once you have them the added bullshit can be washed away to go forwards on the real charges.

    This case will clearly go to the supreme court should they fight extradition.

    Now if only we had some document or recording to show that the FBI has lied about the charges when theory alone is not quite enough.

    • http://profiles.google.com/zerianis10 Christopher Kidwell

      They have already said that they are going to fight extradition on the grounds that the United States was not being honest with New Zealand.

      • Anonymous

        Then I hope they realise what they are up against.

        The person in the DoJ to take this action against Mega is Neil MacBride who before he took the job as US Attorney for the Eastern District of Virginia used to work as an anti-piracy enforcer for the content industry.

        Read more here…
        http://news.cnet.com/8301-31001_3-57364004-261/u.s-attorney-chasing-megaupload-is-former-piracy-fighter/

        Hollywood infects US Government like a parasite. Want some action done then just promote someone to the right position funded by bribes.

        • BSAFAIL

          I like this bit here:
          According to a story by my CNET colleague Declan McCullagh, MacBride oversaw the BSA program that rewarded people for phoning in tips about suspected software piracy.

          …Just means he’s utilizing same techniques as filehosters: To promote his “business”. I hope he gets run down by a truckdriver watching pirated porn.

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  • Hillbilly

    Lol…FBI congratulating a job well done? Really? They arrestred a band of nerds with an anti-terrorist squad. Hillbilly cops could have done that. FBI acting nice and kissing ass. Let’s see NZ block the extradition and we’ll see how nice the US government really is.

  • Anonymous

    BLACK MARCH is coming. Media boycott.

    • Farts

      Its also a boycott from pirating. I suggested this before that to make a impression we need to stop pirating as well but I was flamed here. At least someone else has the right idea. If more people were aware of the boycott and the importance it could make a difference.

    • https://market.android.com/search?q=puzzleduck&so=1&c=apps PuZZleDucK

      “Media boycott”
      … but I won’t be able to handle not using the internet for a whole month.
      you mean “_OLD_ media boycott”… been there for years, but I’ll be sure to be extra vigilant during “BLACK MARCH”.

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  • Alyssa Blindy

    “Nevertheless, some observers are predicting that due to its groundbreaking status, the extradition battle for the Megaupload defendants will be both complex and prolonged, and could even go all the way to the Supreme Court.”
    I have to agree with this statement. I believe that it could end up at the Supreme Court. Hang on tight, everyone. Don’t let your arms or legs out of the car. Enjoy your ride.

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  • Xander

    The reasons the US are going to possibly use a UN Treaty is because under NZ Law the Copyright charges and even racketeering is not an extraditable offence under the NZ US extradition Treaty. There is also case law setting a president that will most likely make it impossible. More detrails regarding this can be found at the 3News website link below.

    http://www.3news.co.nz/US-will-struggle-to-extradite-Kim-Dotcom/tabid/423/articleID/242681/Default.aspx

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  • guest

    thanks for your article and i copied it to my site
    http://www.mega-world.us/megaupload-co-founder-released-on-bail.html

  • http://twitter.com/XB99Z XB99Z

    FBI are scum. It’s really that simple. They don’t exist to protect the weak only the corrupt.

  • Pedro Da Silva Neto

    I’m curious, what was the last ground-breaking drug-dealing bust?. While important, why are copyright offenses taking so much time an effort of the authorities?. May be money?.

    • Anon

      it is money. the big movie companies give them a bunch of money to do this stupid pointless shit… leave the internet alone america its not only your’s

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