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MegaUpload Launched Lawsuit against Hong Kong

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MegaUpload sues the Hong Kong government in a bid to unfreeze its assets, which are inaccessible after the country effectively shut down the website. MegaUpload notes that the request of the United States to lock up its funds was illegal. The company still hopes to use its assets to enable users of the service to retrieve their personal files.

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It’s been 2 years since MegaUpload was shut down, and the American government still can’t find a way to serve the company registered in Hong Kong. Within the last two years, the Hong Kong government has kept MegaUpload’s money locked up under the order of the United States.

In the meantime, the company keeps trying to unfreeze the funds, and has now filed an application in a Hong Kong court, asking the local Department of Justice to set aside the restraint order. MegaUpload claims it should no longer be held hostage based on an order issued after an allegedly illegal request by the American government. The restraint order in question has actually taken the company offline by freezing all its bank accounts and other funds.

Two years passed, but the US Department of Justice has yet to serve the company or initiate substantive criminal proceedings against it, points out MegaUpload. The web service admitted being trapped in a state of criminal limbo. During more than two years, the restraint order has prevented the company from conducting business or paying bandwidth costs to return data to its users. The company is trying to say that both its users and it have been severely prejudiced by the US government’s conduct.

The restraint order is believed to be issued illegally at least because the American government simply failed to disclose how MegaUpload would be served. Their inability to prosecute the company over this long period of time can be grounds to discharge the injunction independent from the US’ nondisclosure.

As a result, the High Court of Hong Kong ordered the local Department of Justice to respond to the company’s allegation, and the response will be announced in June. Soon after that the court is expected to decide on the issue.

Attorneys admit that if the defunct service wins the case, the door will be open for a multi-billion dollar civil claim. It is known that MegaUpload used to be valued at 2bn dollars and was going to get listed on the US stock market before the shutdown.

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