20 Jan 2012

Hackers retaliate as Megaupload is shut down

Hackers groups target Justice Department website, after US officials arrest the heads of content sharing website Megaupload and shut it down.

Hackers retaliate as Megaupload is shut down

The US Department of Justice announced the indictment and arrests of four company executives in New Zealand on Friday. Megaupload.com has also been shut down.

The founders of the site have been charged with violating US piracy laws.

New Zealand police raided a mansion in Auckland and arrested Megaupload founder Kim Dotcom, also known as Kim Schmitz.

About 70 police, some of whom were armed, raided 10 properties and also arrested the website’s chief marketing officer, Finn Batato, 38.

Co-founder Mathias Ortmann, 40 and Dutch national Bram van der Kolk, 29, were also arrested. Police seized millions of dollars worth of assets from the group, including luxury cars.

“The FBI contacted New Zealand Police in early 2011 with a request to assist with their investigation into the Mega Conspiracy,” said Detective Inspector Grant Wormald from the Organised and Financial Crime Agency New Zealand.

“All the accused have been indicted in the United States. We will continue to work with the U.S. authorities to assist with the extradition proceedings,” Inspector Wormald said in a statement.

Online piracy legislation debated

The arrests come as the debate over online piracy comes to the fore in Washington, as politicians try to bring in tougher legislation, known as the Sopa and Pipa bills.

Vocal critics of the acts showed their opposition to the shutdown of the Megaupload site by attacking the public websites of the FBI and the Justice Department. The FBI website was unavailable on Thursday evening – officials said it was being treated as a “malicious act”.

The world’s largest music company Universal Music, and the two big trade groups that represent the music and film industries were also targeted.

Representatives with the Justice Department and Recording Industry Association of America declined comment on the attacks.

The arrests and shutdown of the file-sharing site came a day after Wikipedia and other major websites staged a blackout to protest against the proposed Sopa and Pipa bills.