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MegaUpload's assets have been seized by the government, and its bank accounts have been frozen, Hence, MegaUpload can no longer pay companies like Carpathia and Cogent for their services, the AP reports.
In what some have called one of the largest criminal copyright cases ever brought by the U.S., MegaUpload was yanked offline January 19 and its founder and several of his associates were arrested and charged with crimes related to online piracy.
Many millions of people worldwide have allegedly used MegaUpload's cyberlocker service to store and access unauthorized copies of TV shows, feature films, songs, porn, and software. But some customers used MegaUpload for above-board practices like sharing large (and legal) files and backing up legitimate files.