Megaupload Can’t Come Back Online, U.S. Tells Court

by downloadiso on October 25, 2012

Megaupload Can’t Come Back Online, U.S. Tells Court

The U.S. Government has just submitted its objections to Megaupload’s motion to temporarily dismiss the criminal indictment against the company. Megaupload’s lawyers had argued that a dismissal would allow the cyberlocker to rehabilitate itself, but the U.S. believes this can’t happen as Dotcom has sworn that the old Megaupload won’t return. According to Kim Dotcom the DoJ’s opposition is “full of frustration.” “Their bluff case is falling apart,” he says.

megauploadTwo weeks ago Megaupload filed a renewed request to dismiss the indictment against it, until the U.S. Government finds a way to properly serve the company.

Megaupload’s legal team reiterated that the company’s due process is at stake. The company has already been destroyed and is being held ransom by the U.S. Government, without any funds to establish a proper defense.

“The company should have an opportunity during that period of time to try to rehabilitate itself,” is one of the claims made.

In a filing submitted to the District Court yesterday the Department of Justice (DoJ) opposes the motion. Among other things, the DoJ argues that Megaupload has not “suffered massive harm” as New Zealand’s court records show that Dotcom doesn’t intent to bring the site back online.

While Megaupload’s legal team never said the company would bring Megaupload back online, this is what the DoJ appears to conclude from the attorney’s earlier statements.

In their opposition filing the DoJ cites several sworn statements made by Kim Dotcom in New Zealand, where he states that Megaupload won’t return while he is out on bail. This contradicts the “rehabilitation” argument, the DoJ concludes.

“Defense Counsel’s claim that the corporate defendant can and should be allowed to operate undermines the sworn statements of Dotcom that he has no plans or ability to continue to operate or fund the businesses in the Indictment during pendency of the extradition process,” the DoJ writes.

“If defendant Dotcom intentionally misled the court in New Zealand about his intentions and capabilities in order to obtain his release from pre-extradition confinement, it seems Defense Counsel’s representation might endanger Dotcom’s bail situation or even subject him to additional charges.”

The DoJ argues that “rehabilitation” implies the ability to relaunch the site while the extradition process in New Zealand is still ongoing, meaning that Dotcom would have misled the court.

In other words, since Megaupload can’t return pending the extradition procedings, there is no harm done or due process violated by not dismissing the indictment.

Dotcom himself is not impressed by this line of reasoning, describing it as a bluff that’s borne out of frustration.

“Just saw the opposition by the DOJ against our new motion to dismiss. It’s full of frustration. Their bluff case is falling apart. Good!!!” Dotcom notes in a tweet.

“If the DOJ was a poker player they wouldn’t survive a single bluff. Their tells are so easy to read,” he adds. “All-in.”


To most observers the above may be a little confusing. After all, Kim Dotcom has said on numerous occasions that Mega will return. However, Mega is not the same as the old Megaupload.

In poker terms the new Mega is playing a new game at a different table.

Dotcom and his colleagues are currently working on a brand new service that will be bigger and better than the file-hosting service that was taken down. Mega will have a strong focus on security and privacy of users’ files, and is set to offer more services than file-sharing alone.

This means that the DoJ is probably right by arguing that Megaupload will not return. However, that does not mean that the funds that will become available, when the indictment is dropped, can’t be used to rehabilitate the Megaupload brand in other ways.

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