Skip to main content

Megaupload's frozen funds mean data loss for users

Frozen accounts mean storage servers cannot be paid for

Data stored on the third-party servers used Megaupload could well be deleted as the company's frozen accounts mean it's been unable to pay for storage costs, the US Attorney's Office has warned.

Once the credit and goodwill expires, server owners are likely to delete the stored information belonging to the service's customers, regardless of its nature. Carpathia and Cogent, the two companies which own the servers holding data, could start deleting it as soon as February 2.

Carpathis issued a statement to press insisting that it would be unable to release the data to its owners.

"Carpathia Hosting does not have, and has never had, access to the content on Megaupload servers and has no mechanism for returning any content residing on such servers to Megaupload's customers," read the statement.

"The reference to the 2 Feb 2012 date in the Department of Justice letter for the deletion of content is not based on any information provided by Carpathia to the US Government."

Ira Rothken, the lawyer representing Megaupload, says that up to 50 million users may lose their data in this way.

The company accounts have been frozen whilst owner Kim Dotcom and several of his executives and staff members are investigated on charges of piracy, money laundering and fraud. Kim Dotcom is currently on trial in New Zealand, awaiting an extradition ruling to the US, his bail has been denied after he was judged to be a flight risk.

Read this next

Related topics