What Happened to Megaupload.com

By Cecilia Hwung | Last Update:

In the early 2000s, the internet evolving from a text-dominated realm to a multimedia-rich landscape, Megaupload seized the opportunity and redefine the way people shared and accessed digital content. It allowed users to easily upload and distribute large video and media files and became one of the most popular file-sharing platforms globally.

Soon, its rapid success caught the attention of law enforcement and copyright holders, who alleged the site facilitated piracy and illegal downloading. In January 2012, Megaupload was shut down by the US, with its founder Kim Dotcom arrested and servers raided.

However, what happened to megaupload.com is far more than above. This article delves into the history of Megaupload, from being a disruptor to a legal battleground, and its current state in the digital era.

Megaupload Facts

Company: Megaupload Limited

Founded: By Kim Dotcom in 2005

Head Office: Hong Kong

Data Centers and Operations: USA, Canada, France, Netherlands, UK, Philippines

CEO: Kasseem Dean (aka Swizz Beatz)

Employees: 155

The Rise of Megaupload.com

Megaupload was founded by the entrepreneur Kim Dotcom in 2005 and emerged as a pioneer in the world of online file sharing and storage. Unlike traditional methods of file transfer, Megaupload offered cloud-based storage and accelerated download speeds, catering to the growing demand for efficient data sharing in an increasingly digital world.

Its clean and intuitive interface enabled users of all technical backgrounds to upload their files and generate shareable links seamlessly. The service also introduced a tiered membership system that included both free and premium options, granting access to enhanced features such as faster downloads, larger storage quotas, and better security.

Megaupload UI
  • Unique visitors: 50+ million daily users
  • Internet traffic: 4% of all Internet traffic passes through Megaupload
  • Storage capacity: 100+ Petabytes
  • Unique files stored: 12+ billion files
  • Transfers per second: 800+ complete every second
  • Registered users: 180+ million
  • Corporate membership: 87% of fortune 500+ companies have accounts

At the peak of Megaupload's popularity, Kim Dotcom dropped the "Megaupload Song" featuring Kanye West, Alicia Keys, Diddy, Will.i.am, and Snoop Dogg. It showed Megaupload's power and connections in the music industry and surprised its friends and foes.

Megaupload's Services and Controversies

Megaupload offered a seamless way for users to store and share large video, audio, and media files through its cloud-based interface. It utilized fast download speeds and built-in streaming to quickly deliver and play video files even in gigabytes.

Features Premium Members Non-members

Download files from Megaupload

Mega Manager for up and downloads

Download speed priority

Highest Low Lowest

Maximum parallel downloads

Unlimited 1 1

Online storage file manager

Unlimited 200GB No

Max. upload size per file

Unlimited Unlimited Unlimited

Download limit per 24 hrs

Unlimited Limited Very limited

Advertising

Little Medium Maximum

Resume up & downloads

Fetch files from remote servers

Send files to up to 1000 recipients

Megaupload also incentivized frequent uploaders through bonus reward programs that offered monetary payouts. Heavy users could earn money by consistently uploading popular files that received many downloads. This helped attract an active user base that continuously added massive new content.

For the same reason, the platform began to attract attention from copyright holders due to the widespread sharing of copyrighted material on the platform. While Megaupload claimed to comply with copyright laws and promptly remove infringing content upon notification, the sheer scale of the platform's user base made it challenging to entirely eliminate unauthorized sharing. This led to a series of legal battles and debates surrounding the Digital Millennium Copyright Act (DMCA) and the role of online platforms in policing copyrighted content.

Downfall and Legal Battles of Megaupload

In January 2012, the U.S. Justice Department took dramatic action, shutting down Megaupload's servers and seizing its related sites, such as Megavideo, Megabox, Megapix, etc. accusing Megaupload of causing over $500 million in losses to copyright holders. Founder Kim Dotcom's home in New Zealand was raided and his assets were frozen globally. Dotcom and three Megaupload executives were arrested and charged with racketeering as well as money laundering.

Megaupload shut down

Following the raids, Kim Dotcom entered a lengthy legal battle fighting extradition to the United States from New Zealand. He was released on bail in 2012 but has remained in New Zealand awaiting the long-running extradition case.

Dotcom argued Megaupload operated lawfully under the DMCA safe harbor provisions, which protect sites that promptly remove infringing content after being notified. However, the DOJ claimed Megaupload didn't comply with DMCA requirements and knowingly facilitated piracy.

The case crawled through various New Zealand courts for years, with technicalities delaying final rulings on Dotcom's extradition. Meanwhile, Megaupload servers remained confiscated by the FBI, with users unable to access their files.

After the sentence of two Megaupload executives (Mathias Ortmann and Bram van der Kolk) in 2023, Kim Dotcom is still fighting extradition. So far, the extradition issue has still not been resolved conclusively.

From Megaupload.com to Mega.io

After the shutdown of Megaupload, Kim Dotcom, Mathias Ortmann, and Bram van der Kolk established MEGA, a new cloud-based storage services website, in 2013.

MEGA Launched in 2013

Just in one day following its release, MEGA had over 1 million subscribers and claimed 4% of all internet traffic is back at it again. It gives users 50GB of storage for free and charges $10 or $20 for premium service per month. Instead of encrypting data on servers like Megaupload, MEGA provides end-to-end encrypted file storage and transfer with users holding the decryption keys, so as to operate lawfully and address copyright concerns.

Pivotal Differences between MEGA and Megaupload

Founder: Kim Dotcom founded both services but is not involved in MEGA's operations. This may distance MEGA from Megaupload's legal troubles.

Features: Megaupload was used to store, share, and download files. MEGA adjusts its product line covering cloud storage, object storage, file syncing, sharing, file backup, chat, and meetings.

Encryption: MEGA uses end-to-end encryption for all files uploaded, which Megaupload did not. This prevents MEGA from accessing user files.

User control: With MEGA's encryption, users control the keys to access their files. Megaupload controlled access to all files stored on its servers.

Terms of service: MEGA has responded to law enforcement requests by shutting down infringing users' accounts. Megaupload was accused of not taking action against widespread piracy.

MEGA Domains

MEGA was initially launched under the domain mega.co.nz, but you may see various domains and are not sure which one is official at the moment.

  • mega.io: The official domain activated since Jan. 2021. It reflects the global nature of MEGA and is more likely to be indexed by search engines than .nz which is often seen relevant to New Zealand searches only.
  • mega.co.nz: The legacy domain of MEGA for internal, static content, user files, API, and other non-user-facing URLs. Links under this domain are redirected to mega.io automatically.
  • mega.nz: The legacy domain of MEGA for logged-in accounts to access files through browsers or links. It's redirected to mega.io now.
  • megapay.nz: The legacy domain of MEGA to process its service payments. Links under this domain are redirected to mega.io as well.

About The Author

Cecilia Hwung is the editor-in-chief of Digiarty VideoProc. With over a decade of experience, she specializes in delivering insightful content on AI trends, video/audio editing, conversion, troubleshooting, and software reviews. Her expertise makes her a trusted ally in enhancing users' digital experiences.

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