U.S. Government says it can freeze Mega assets even if case is dismissed. That’s because in the government’s view, the assets are the proceeds of criminal activity and the prosecution against founder Kim Dotcom will still be pending. The fact that the assets are in the name of Megaupload rather than its founder is of no consequence, the government claimed.
Hollywood, at least, seems nervous that Judge O’Grady might buy Megaupload’s argument. In a conference call held Wednesday in advance of today’s hearing, a senior vice president at the Motion Picture Association of America argued that the dismissal of the case against Megaupload would have little practical impact, since the company’s principals would still be facing indictment. And he rejected Kim Dotcom’s efforts to frame the case as a test of Internet freedom, describing Dotcom as a “career criminal” who had grown wealthy stealing the work of others.