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Kim Dotcom bankrupt after blowing a fortune defending MegaUpload

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By John McCarthy, Opinion editor

November 25, 2014 | 2 min read

Kim Dotcom, the founder of Megaupload, previously one of the world’s most popular file-sharing sites, has announced bankruptcy after spending $10m defending himself in court.

Kim Dotcom may see prison time if he cannot make bail

Megaupload, which was shut down in 2012 by the FBI in response to a racketeering and criminal copyright infringement investigation, was a leader in online file storage and sharing long before cloud services ever came to prominence.

However, as the site also played host to pirated files which Dotcom was accused of accommodating, he was arrested at his New Zealand mansion by a local authorities and a US copyright enforcement taskforce in January 2012.

The German told the unBound Digital conference in London via Skype on Tuesday, according to Business Insider: “My legal team resigned after I ran out of money. I spent $10 million to defend myself. They have drained all my resources.

"I'm an easy target because of my flamboyant lifestyle, it's hard to keep a low profile when you own number plates with 'God' and 'Stoned' on them. Also, I’m German, and Hollywood loves its German Bond villains.”

Dotcom claimed Megaupload worked with Hollywood studios to remove files violating copyright law but in the end “the US government abused its power. It has no ethics anymore. I’ve lost my faith in the law. It’s just 'who pays, wins”.

The entrepreneur may fail to make bail as a result of his bankruptcy at his next court hearing.

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