Government may freeze Megaupload assets even if case is dismissed

30 July 2012

The United States government said Friday that even if the indictment of the Megaupload corporation is dismissed, it can continue its indefinite freeze on the corporation's assets while it awaits the extradition of founder Kim Dotcom and his associates.

Judge Liam O'Grady is weighing a request to dismiss the indictment against Megaupload because (in Megaupload's view) the federal rules of criminal procedure provide no way to serve notice on corporations with no US address. At a hearing in Alexandria, VA, he grilled both attorneys in the case but did not issue a ruling.