In a surprising turn of events earlier this week, the FBI managed to shut down a whopping 4% of the internet’s bandwidth: Megaupload.
For those who are not aware, Megaupload was a powerhouse on the internet in the cloud-storage service, for both legitimate and questionable content alike. The US government managed to seize the domain name, $50 million in assets, and even managed to get the New Zealand police to arrest four key members of the site, including the founder Kim Dotcom – indicting him on conspiracy and racketeering charges.
Quoting the Justice Department press release:
“Seven individuals and two corporations have been charged in the United States with running an international organized criminal enterprise allegedly responsible for massive worldwide online piracy of numerous types of copyrighted works, through Megaupload.com and other related sites, generating more than $175 million in criminal proceeds and causing more than half a billion dollars in harm to copyright owners”
“All sharing functionality on FileSonic is now disabled. Our services can only be used to upload and retrieve files that you have uploaded personally”
While downloading content hosted on the site is no longer possible, users can still download files they have uploaded themselves. No official statement has been released by the company thus far. For the latest updates, check out their blog.
Ouch. What does this mean for other file-sharing services on the web?