Because Megaupload’s cash was frozen, they’ve been unable to pay the companies that store data for it, Carpathia Hosting and Cogent Communications Group.
Megaupload’s lawyer is attempting to work with the companies, which he says store 50 million users’ data. At this point, the government no longer plays a role, as they chose not to seize the servers when executing the search warrant against Megaupload.
Losing the files, many of which Megaupload claims are legal, could make it harder for the company to defend itself in court.
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