I know it happened a few days ago but I am still shocked they got seized.

http://latimesblogs.latimes.com/enterta ... -feds.html

The Department of Justice announced Thursday that it has conducted a major action to shut down MegaUpload, a popular file-sharing site widely used for free downloads of movies and television shows.

Justice Department indictment of MegaUpload After receiving indictments from a grand jury in Virginia for racketeering conspiracy, conspiracy to commit copyright infringement and other charges on Jan. 5, federal authorities on Thursday arrested four people and executed more than 20 search warrants in the U.S. and eight foreign countries, seizing 18 domain names and an estimated $50 million in assets, including servers run in Virginia and Washington, D.C.

MegaUpload is a "digital locker" that allows users to store files that can then be streamed or downloaded by others. Its subsidiary site MegaVideo became very popular for the unauthorized downloads of movies and TV shows. Users whose uploaded content proved particularly popular were paid for their participation.

Are the owners really responsible for checking every single upload to determine if it is legal?