The indictment unsealed this morning accuses Megaupload.com of costing copyright holders over $500 million dollars in lost revenue.
More after the break
MegaUpload is based in Hong Kong with leased content servers in Ashburn Virginia. Some of Megauploads executives are based in New Zealand where they were picked up Thursday on behalf of the U.S. government and the indictment released today. The associated press is reporting that Megaupload founder Kim Dotcom and three others were arrested in New Zealand and three others are still at large.
Megaupload released the following statement before being shut down:
“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. We have some good ideas. Please get in touch,”
Megaupload is in a unique predicament because, while they are being accused of facilitating piracy many recording artists and celebrities including; Swizz Beats, Kanye West and Alicia Keys have both endorsed Megaupload and used the service.
Megaupload reportedly has hundreds of millions of users and gets over 50 million hits per day. It’s currently in the top 100 websites in terms of traffic.
The indictment was released in eastern Virginia because of the leased server space in Ashburn which is just outside of Dulles airport.