Megaupload Fucked

[RawAlex]

So, what do you think?

[Toby]

Indicted under RICO, they're fucked.

It will be interesting to see what similar file hosting/sharing services do in an attempt to avoid the same fate.

[Hell Puppy]

Kim Schmidt has a long history of scams including embezzlement, shady trading scams, etc. Then in December he pretty much thumbed his nose at everyone, probably thinking he was untouchable.

That usually doesn't end well.

Supposedly the site had pulled over $42 million, let's see if he can skate, stay out of jail and slide out with enough of it to call it "cost of doing business". It's happened multiple times before...

[RawAlex]

What I found interesting was that the US feds didn't just look at one single site and do that, rather they looked at the whole ball of wax, and worked out the structures under which the money was moving.

The money laundering is going to be the hardest part of Kimble to get away from. Basically, the "sub-sites" were actively getting paid for referring people to download, which is what allowed the money to move from the rather illegal concept of charging people for download access, to the more legal "forum" and discussion sites. The feds saw through this bullshit charade, and realized that it was just a front.

Mega also specifically made it harder for rights holders to track their material, by not having any search functions. They are apparently specifically excluded major movies and software off their "top downloads" lists, to hide those facts. Finally, even when they got a DMCA or copyright notice, they apparently made another mistake. In order to be effecient, their storage systems apparently would only maintain single copies of files, even if they were uploaded by different users to different accounts. When they got a DMCA style notice, they would only remove the single point complained about, and not the root files that might have been on 20 other links on the site.

Just as importantly, the US got the various countries involved to move on them all at the same time, effectively shutting them down all over AND getting most of the player arrested direction. Schmidt is currently enjoying jail food, from what I gather.

[softball]

The international co operation, I think, is key. Until now, these lowlife scumsuckers thought they were out of reach of US Justice.......wrong. I can think of a ton of others with the same m.o. and if I were them I would pull the pin, take the money and run But they won't and uncle Rico will get em.

[softball]

Some piccies of his house

[EmporerEJ]

Just amazes me. I'm not condoning illegal activity mind you, just speaking in the abstract. But why don't these guys make some money, and then stop. Or go legit. They get big heads, and think they can thumb their noses at the world. When you get big enough, the government comes and gets you. Can't hide forever.

[softball]

Originally Posted by EmporerEJ

Just amazes me. I'm not condoning illegal activity mind you, just speaking in the abstract. But why don't these guys make some money, and then stop. Or go legit. They get big heads, and think they can thumb their noses at the world. When you get big enough, the government comes and gets you. Can't hide forever.

I think his license plates say it all. His next vanity plate should be HUBRIS

[gonzo]

Originally Posted by rhetorical

I think his license plates say it all. His next vanity plate should be HUBRIS

Maybe Fabian can be his cell mate.

[housekeeper]

Great story, money laundering, embezzlement, stolen goods, international intrigue, with free porn thrown in to boot. Gotta love it....