Financial News Story of the Day – Megaupload Shut Down and Employees Arrested
Megaupload, one of the largest file-sharing sites on the internet, was shut down by authorities on charges of over $500 million worth of copyright and intellectual property theft. Simply, it means Megaupload paid users to upload copyrighted content then claimed they weren’t responsible for what users uploaded. Megaupload founder Kim “Dotcom” Schlitz is infamous in the industry and across the web for less than flattering pictures currently in circulation. The government’s 72-page indictment of Schlitz and his posse include about $8 million worth of cars.
It seems that as the economy worsens, more and more company skeletons come to light as the government begins to pay more attention to operations that shouldn’t really be making that much money – we’ve mentioned this sentiment in previous posts before. From Olympus’ money laundering accusations to Megaupload, it’s highly probable that more company busts will happen in the next few years (source: Gizmodo.com).
Excerpt: “The federal indictment accuses Megaupload—which shocked the internet with the revelation that rap producer Swizz Beatz is for some reason its CEO—of over $500 million in lost media revenue from hosting pirated media. They had quite a run, though! Megaupload boasted “more than 150 million registered users, 50 million daily visitors and accounting for four percent of the total traffic on the Internet,” according to the DoJ. And some famous friends.”
Daily Finance Summary – Megaupload Dies, Dow Nears 13,000 and a Global Recession
- Megaupload was shut down and its assets seized by the government on copyright theft charges
- The Dow settled at 12,720, making it 3 straight weekly wins
- Economist Gary Shilling predicts global recession on its way
- The SOPA Bill is dead in its tracks thanks to overwhelming online support