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Megaupload data could be deleted starting Thursday

By Hayley Tsukayama

Now that federal officials are done with the data they wanted to review after shutting down file-sharing site Megaupload, the fate of that data is in limbo. Users who had legitimate files on the site — work documents, photos, home videos and more — may see that information deleted as soon as this week.

Federal officials have reportedly told two storage companies in Virginia — Carpathia Hosting and Cogent Communications — that they may begin deleting data Thursday, The Associated Press reported.

Megaupload had been contracting with the companies to store the information, but can no longer pay those contracts because its assets have been frozen.

Megaupload claimed to have 1 billion users and 50 million daily users before it was shut down, and many wondered what would happen to consumer data after the site’s seizure.

Ira Rothken, attorney for Megaupload, told the news service that at least 50 million customers could lose their files, but that he hopes that a deal can be reached to return the data to customers. He added that he hopes to use some of that data in Megaupload’s defense, as well.

“We’re cautiously optimistic at this point that because the United States, as well as Megaupload, should have a common desire to protect consumers, that this type of agreement will get done,” he said.

As Web sites come and go, so too could the information you entrust them with

Megaupload founder Kim Dotcom will have to wait for bail decision

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