mad825 said:
Damn, they're slow.
I thought law enforcement agencies had "street smarts". Guess not.
Hmmm, well I think people are overlooking the important bit here in their interest to make this into a piracy/copyrights case... on both sides of the fence of copyrights issues.
One of the charges brought here is money laundering. There aren't any details here as to what was being done exactly, but that's probably why there are actually arrests being made despite what it's being dressed up as. Chances are some kind of money trail was found which went back to the "mega" family of digital services, now we're seeing a bust, and people both politicians and those interested in copyrights are trying to make this into something it's not.
See, for money laundering to be involved in connection to these charges it's likely we're not dealing with your typical first world piracy where no money is being made off the media by the pirates and the concerns are entirely about lost sales.
While pure speculation on my part, I'd imagine what happened was that the specific guys who got busted were charging money for copyrighted material at least out of the pubic eye, with this being covered as part of the megaupload business... specifically so criminals with stolen money could spend a ton of it through Megaupload as a filter and were then given the majority of that money (sans a fee) back in order to "clean it" as far as the trail goes. Basically trying to use the crimes of cash for content pirates, as a cover for a bigger crime, assuming nobody was going to actually go after Megaupload since they hadn't done so already.... it's impossible to say yet, but if we ever find out the details it's probably going to be something along these lines. I'm no expert on money laundering so I can't tell you how it would work exactly... but going by the charges, there is obviously something going on there.
Given that the CEO was not busted it seems likely this was something going on within his organization, not nessicarly involving him or what he was already getting attention for. It not being an actual "copyright bust" despites what the industry might want to believe means that he's not really on the radar since all contreversy aside, he never did anything that they feel they can prosecute him for.
Or in short (as I said to begin with) it's a money laundering case, and legally speaking there probably won't be anything more to it than that. The other charges are just dressing, when someone gets arrested IRL every possible charge that can be remotely associated with what someone did is usually thrown at them. In the end a lot of that is going to be thrown out, and probably wouldn't work anyway, but given one good charge the rest of the stuff sounds good and helps set high bails to keep someone in custody. That's a big deal especially in a money laundering case because the people that do that usually have tons of money and the authorities want an unreachable bail because if these guys can get out of custody there is a decent chance they are going to flee somewhere without an extradition treaty. You can't freeze hidden assets and that's what this kind of crime usually comes down to, they probably got caught on one trail, but a decent money laundering operation probably had a lot of money going through it with the guy(s) running it stashing a cut from each transaction.