[Duchess]

From what I read pertaining to the people behind MegaUpload, I don't think they were shut down based solely on copyright stuff even though that's what was released.

Check this on the founder of MU.

In 2001, Schmitz purchased $375,000 worth of shares of the nearly bankrupt company LetsBuyIt.com and subsequently announced his intention to invest EUR 50 million in the company.[13] Unknown to others, Schmitz did not have the funds available to invest, although the announcement caused the share value of LetsBuyIt.com to jump by nearly 300%.[14] Schmitz quickly sold the shares and profited $1.5 million as a result.[13]
Schmitz had also arranged and obtained an unsecured loan of EUR 280,000 from Monkey AG, a company for which Schmitz had served as Chairman of the Board. The funds were to be paid to Kimvestor AG. As a result, both Monkey and Kimvestor went bankrupt.[15]
In January 2002, Schmitz was arrested in Bangkok, Thailand, deported to Germany, and sentenced to a probationary sentence of one year and eight months, and a EUR 100,000 fine, the largest insider-trading case in Germany at the time.[16] Schmitz also pleaded guilty to embezzlement in November 2003 and received a two-year probation sentence.[17]

He has been doing shady business in the past even though his record got wiped clean. Also.. he was not arrested in the US, he was arrested by New Zealand cooperating with a shitton of other authorities like Hong Kong and Canada.

It's unfortunate to see data get wiped without prior notice. Imagine if someone was using MU as backup or storage. All that information will now be gone. However, I don't think them taking down MU itself was bad at all. If you commit a crime, you should be punished for it, whether people are legitimately using your services or not.