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Megaupload data safe – for now

Yesterday we ran with a story which explained that Megaupload users may start losing their data. The latest news to reach us is that the data will be safe for a while longer.

Kim Dotcom, founder of Megaupload is under trial for piracy, money laundering and racketeering charges and subsequently the company accounts have been frozen. This has meant that they are unable to pay hosting fees to Carpathia Hosting and Cogent Communications, the two main services who host the data.

Kim DotCom (right) and MegaUpload employees appear in court. (Credit: 3News.co.nz/Screenshot by Jonathan Skillings, CNET)

Megaupload’s attorney Ira Rothken has said that managers in both companies have agreed to preserve the data for a minimum of two weeks. He spoke “The hosting companies have been gracious enough to provide additional time so we can work out some kind of arrangement with the government.”

Rothken has said that the information on the servers is critical to MegaUpload’s defense. More can be read at CNET.

Kitguru says: Depending on how it folds out, this case could be the foundation for future prosecutions.

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