Kim “DotCom” Schmitz, the founder of cyberlocker website MegaUpload.com, has been released on bail. DotCom was indicted in the U.S. for criminal copyright violations and racketeering. He was arrested at his mansion last month near Auckland, New Zealand following a major police raid. Cash, cars, and other possessions that belonged to DotCom was seized.

Megaupload was taken down a couple of weeks ago as part of a global government move. Authorities in the U.S., Hong Kong, the Netherlands, New Zealand, the Phillipines, the U.K., and Germany worked in conjunction to take the website down. Now federal prosecutors are saying that data from users of Megaupload could be deleted as soon as this Thursday. Millions of users stored their personal data including family photos and documents on Megaupload, but they have not been able to see their data since the government raid.

Earlier this week, file-sharing service Megaupload.com was shut down and the executives at the company was arrested. The domain name was seized and the cars that the executives bought using revenues from MegaUpload was repossessed. All of this was done without the need for SOPA and PIPA. However TechDirt’s Mike Masnick points out that there are concerns about what the Department of Justice considers as evidence for criminal behavior.

Yesterday, Megaupload.com was taken down by the feds. The domain name was and $50 million in assets was seized. Four of Megaupload.com’s key employees in New Zealand was arrested including Kim Schmitz (Kim Dotcom). In a 72-page indictment, prosecutors wrote that Megaupload.com earned over $175 million since the website was founded in 2005, most of it based on copyright infringement.

Kasseem “Swizz Beatz” Dean is best known for working with some of the best hip hop artists and producing some of the best hits. It turns out that he is also presently the CEO of Megaupload and was responsible for enlisting celebrities like Diddy, Kanye West, will.i.am, Alicia Keys, and Kim Kardashian to appear in a song called “Mega Song.” He filed a lawsuit against Universal Music Group for having the video taken down from YouTube. Now it appears that the FBI has shut down MegaUpload.com and four people have been arrested as suspects for being online pirates.

Above is a video that Megaupload created a music video that features Macy Gray, Kim Kardashian, Will.i.am, Alicia Keys, Snoop Dogg, Chris Brown, Kanye West, Floyd Mayweather, Estelle, Carmello Anthony, Ciara, Brett Rattner, Lil’ Jon, P. Diddy, Mary J. Blige, and several other celebrities. Universal Music Group had it taken down from YouTube. YouTube’s copyright filters removed the all star video, but Google reinstated the video on Wednesday.

Megaupload is a popular file sharing service that is suing record label company Universal Music Group (UMG). Last week Megaupload put together a video that went on the offensive against the recording industry and it featured several big name artists, but Universal Music Group had it taken down. Artists such as Kanye West, P. Diddy, Chris Brown, Snoop Dogg, Macy Gray, Mary J. Blige, The Game, Will.i.am, and Alicia Keys was on the video singing their praises of Megaupload. Many of these artists have contracts with UMG.

The British Recorded Music Industry sent Google Inc. (NASDAQ:GOOG) a cease and desist letter to request them to remove copyright-infringement links from their index.  The letter specifically focused on nine one-click hosting websites that hosts files with thousands of illegal songs.  These websites include MegaUpload, UserShare, and SendSpace.  Whether Google will follow the steps in the C&D or not is a big question mark. [paidContent UK]