Tag Archive: MegaUpload


kimMegaupload founder Kim Dotcom was released on bail by North Shore District Court Judge Nevin Dawson today.

Dotcom had been held in custody since an anti-terrorist police squad raided his Coatesville mansion last month following a lengthy FBI investigation.

While the prosecution argued that Dotcom would have the financial resources to flee the country, the Judge concluded that “none of significance” were found.

An investigation did turn up four additional bank accounts in the Philippines but they were all empty.

As a result the Megaupload founder was released from prison and will continue to fight the accusations of the United States, where he is wanted on racketeering, copyright infringement and money laundering charges.

Although no longer in prison, Dotcom will have to abide by several strict conditions at his Coatesville house. No helicopters will be allowed to land on the premises, Dotcom will have to give police 24 hours notice should he choose to leave, and when he does there will be a limit of 80km to his travels.

The Megaupload founder will also be denied access to the Internet. Dotcom’s lawyer Paul Davison tried to lift the Internet restriction by arguing that it was unrealistic since his client has to stay in touch with his US-based defense team.

“It’s like saying he shouldn’t have access to a telephone, it’s such a fundamental means of communication,” Davison noted.

Prosecutor Anne Toohey said that Internet access would increase the risk of a Megaupload resurrection in a jurisdiction where US authorities can’t touch it.

Bram van der Kolk, Mathias Ortmann and Finn Batato, three other Megaupload employees named in the “Mega Conspiracy” indictment, were all previously released on bail. The former recently called on the New Zealand authorities to keep its dignity in its extradition dealings with the United States.

Source: Megaupload Founder Kim Dotcom Released From Prison

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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.

Source: Megaupload Co-Founder Released On Bail

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Following his arrest along with the rest of the Megaupload management team on January 19th, Bram van der Kolk endured three weeks in the custody of New Zealand authorities.

Der Kolk, a Dutch citizen who oversaw programming and network issues at the Hong Kong-based company, appeared in court several times in an attempt to obtain bail. Last week the 29-year-old was finally allowed to join his family on the outside, although Judge Pippa Sinclair imposed a number of restrictions including a complete Internet access ban.

Despite Der Kolk having his communication options reduced, at the weekend he managed to speak with the Sunday Star-Times from his home in Auckland.

The network expert said that although he was “flabbergasted” by the raids, he remains in love with New Zealand. Der Kolk hopes, however, that the country maintains its poise and self-respect in dealing with the United States and their extradition requirements.

“I really hope New Zealand will keep its dignity and can show that it is a sovereign state that has its own justice system,” he said.

While authorities in New Zealand insist the raids and arrests last month were carried out by the book, questions have been raised over the massive show of force. As revealed last week, the New Zealand government sent in heavily armed anti-terrorist police to detain the management team of Megaupload, none of which have any history of violence.

Der Kolk told the Star-Times that he’d never even been in trouble with the police before and that being held in prison for 3 weeks was a new and harsh experience, fortunately made easier with help from sympathetic guards.

Previously, Finn Batato, a citizen of Germany and Mega’s chief marketing officer, was granted bail but his release was delayed due to technical issues surrounding his bail monitoring. Those were eventually overcome and the 38-year-old, who also has no criminal record, was released today to live at the same location as der Kolk.

Megaupload founder Kim Dotcom and co-founder and director of Mathias Ortmann remain in custody.

Source: Megaupload Programmer Calls For Dignity In US Extradition Battle

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Bram van der Kolk, the lead programmer of the now-defunct Megaupload cyberlocker, last appeared in court on January 26th. Judge David McNaughton agreed to give the Dutch national bail but his release was delayed for a week while his home was assessed for surveillance equipment suitability.

Today, van der Kolk was back in the North Shore District Court before Judge Pippa Sinclair who considered what bail conditions should be set before finally releasing the 29-year-old.

Prosecutor Anne Toohey, the lawyer representing the US government, argued that as the site’s lead programmer, der Kolk was the most likely to try and set up a Megaupload replacement.

Lawyer for der Kolk, Guy Foley, said that was ridiculous, especially given the heavy surveillance his client would be subjected to by the FBI on his release.

Toohey said there was a risk that der Kolk would get in contact with his co-accused in the so-called “Mega Conspiracy” of which there are seven in total. Four are currently in New Zealand and three are in other countries – two of those are still at large.

Foley argued that der Kolk must be at least granted permission to speak with two of his co-accused in New Zealand since they all share the same lawyer and need to communicate in order to mount a defense.

Judge Sinclair decided that the networking expert could indeed be released but under strict conditions. First, der Kolk would be denied Internet access which means that his bail location and anyone living there may not have any devices with online access. Additionally, police were authorized to continuously monitor der Kolk’s ability to get online.

Der Kolk was also banned from speaking with any of his co-accused overseas, although he was given permission to speak with those currently held in New Zealand for the reasons outlined by Foley.

Finn Batato, the 38-year-old from Germany whose bail was granted in principle during January but delayed pending an assessment of his bail address, was also in court today.

The address given by Batato was the residence of Kim Dotcom’s wife, Mona, but she had not yet submitted the required paperwork due to illness. Batato’s hearing will now take place tomorrow.

Meanwhile, a smaller house located alongside ‘Dotcom Mansion’ was seized today by authorities. Dotcom’s heavily pregnant wife and their three children will be allowed to stay in the £3.6m property, at least for now.

Kim Dotcom is scheduled to appear in court February 22nd.

Source: Megaupload Founder’s Home Seized, Co-Defendant Bailed

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dark cloudsFor nearly a decade BitTorrent sites have ruled the file-sharing landscape.

In recent weeks, however, worry about the future has increased drastically among the owners of some of the largest torrent sites. Yesterday, BTjunkie closed its doors for good, and TorrentFreak has learned that at least two other sites in the top 10 have toyed with the same idea.

“There have been talks of shutting our site down, even before BTjunkie did it,” one admin told TorrentFreak on condition of anonymity.

The aggressive actions against MegaUpload – site founder Kim Dotcom was raided by an anti-terrorist squad last month – are frequently mentioned as cause for concern. So much so that several people involved with one of the largest torrent sites on the Internet have already dropped out.

“A couple guys on the staff decided not to be involved anymore with the site after the MegaUpload incident,” the admin told us.

The fact that a German citizen can be arrested in New Zealand upon request from the US authorities signaled that regardless of local laws, people connected to file-sharing sites have become a global target.

“It’s turning into a witch hunt. It is worrying,” said the admin.

The thoughts of this admin are shared by one of the owners of another major torrent site, who told TorrentFreak in private that shutting down has crossed his mind on several occasions.

Things have become more and more complicated in recent weeks. Even those who are as cooperative as possible with copyright holders, by swiftly responding to DMCA takedown requests for example, can’t be entirely sure that they won’t become the next target.

On the other side, however, there are also those who continue undeterred, such as isoHunt.com owner Gary Fung, who is battling in court with the music and movie industries.

“After 6 years of 2 civil lawsuits with MPAA and CRIA, we are still here. None of these events is really new to us. From Lokitorrent to Suprnova, we’ve seen sites we index come and go. And as long as the Free Internet exists, sharing will endure. As will isoHunt,” he says.

Ironically enough, isoHunt’s ongoing legal battle might be what keeps Fung relatively safe. If the authorities planned to launch a criminal investigation against a torrent site it would be strange to pick one that is already involved in a civil lawsuit with a copyright holder.

Besides not being worried about the future, isoHunt’s owner is going on the offensive and is urging the entertainment industries to embrace technology, instead if fighting it.

“Perhaps more than ever, I wish the content industries will wake up to the fact you can’t fight technological progress, that battles maybe won, the war is already lost. Unless Content really starts working with technology to accelerate spread of culture, as the Internet has naturalized it. And make more money than ever in the process,” Fung says.

“Because so-called piracy enabled by the Internet and media consumption is not a zero-sum game, a download does not equal a lost sale, and what pirates really want is not necessarily free as in beer, but free as in speech and convenience.”

isoHunt’s determination to continue operating is shared by Extratorrent‘s admin Sam, whose site became the 5th largest torrent site after BTjunkie folded.

“What happened with MegaUpload is not at all good for the torrent world, but I would say it is impossible to stop the unstoppable. After all, if one site is shut down, a hundred new sites will open,” Sam told TorrentFreak, adding, “We have no plans to shut down,we will continue running as usual.”

Another site that’s not going anywhere is The Pirate Bay, the largest torrent site of all. Although its founders are now very close to serving jail time, the site itself will remain online. In the coming weeks The Pirate Bay will replace .torrent files with magnet links, which makes the site more portable and resilient.

The above shows that the end of BitTorrent is not near, but it’s hard to ignore the changing climate. People who previously saw no problems with running a torrent site are now reconsidering their position. The exact fallout, and whether there will be any newcomers to fill the gaping hole BTjunkie left, will become apparent in the coming months.

Source: Is BitTorrent Done? Major Torrent Sites Consider Shutting Down

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