TorrentFreak

The domain name Megaupload.net was just put up for auction again on SEDO. Two weeks ago we reported that the domain, which didn’t belong to Megaupload, was sold to an anonymous bidder but this person didn’t pay up. “After numerous attempts by Sedo.com to contact the buyer I was given the option to re-list the [...]

The US judge handling the Megaupload case noted today that it may never be tried due to a procedural error, a comment that has sparked the anger of Megaupload’s founder. Kim Dotcom is furious with the US Government for destroying his businesses and rendering hundreds of people unemployed. According to Dotcom the case is the result of “corruption on the highest political level, serving the interests of the copyright extremists in Hollywood.”

A US judge has put a bomb under the Megaupload case by informing the FBI that a trial in the United States may never happen. The cyberlocker was never formally served with the appropriate paperwork by the US authorities, as it is impossible to serve a foreign company with criminal charges.

Before Megaupload was shutdown the company was preparing to go public and enter the US stock market with a multi-billion dollar IPO. While the US authorities were conducting their criminal investigation, Megaupload had discussions with some of the ‘Big Four’ auditors and several of the world’s largest investments banks. The top of the financial world was looking at a huge potential tech IPO with a billion dollar valuation, but these plans ended abruptly in January.

At a federal court hearing where several parties hoped to get a clear answer on the fate of Megaupload’s user data, the US Government’s attorney slammed hosting company Carpathia. The US says the hosting provider may be partly responsible for the copyright infringements that occurred through Megaupload and said Carpathia may even become the target of a civil lawsuit.

Last week it was revealed that Megaupload had retained the services of Andrew Schapiro, the lawyer who led YouTube to a summary judgment in its copyright trial against Viacom. But now the US government has filed papers objecting to Schapiro’s law firm working on Megaupload’s defense, citing conflicts of interest involving Google, YouTube, Disney, Fox and other movie, TV show and software companies.

Following a key arrest on Monday, authorities say they have charged three individuals said to be the administrators of a very large file-sharing site. The Greek forum, which carried links to material hosted on cyberlocker sites including Megaupload, had more than half a million members. According to the police the suspects generated substantial revenue from donations and gambling ads and cost copyright holders more than $85 million.