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Megaupload data safe from deletion - for now

For a little while, it looked like the data from over 50 million users of the now shut down Megaupload file sharing web site could be deleted starting later this week. Now News.com reports that a deal has been made between Megaupload's defense team and the two companies that hosted Megaupload's servers, Carpathia Hosting and Cogent Communications Group.

The deal will keep the files from being deleted for at least two more weeks, according to Ira Rothken, MegaUpload's U.S. based attorney. He also claims that he is trying to broker a more permanent solution to this issue with the US government prosecutors in this case. However, Rothken also claims that in order to keep the files from being permanently deleted, Megaupload will need to get back some of its assets that prosecutors have currently frozen.

When US law enforcement officials, working with New Zealand police, made their raids on Megaupload's assets earlier this month, they took over the mansion rented by the company's founder Kim Dotcom.  NZ$10 million in assets were also seized from various financial institutions. A few days later, more raids in Hong Kong managed to seize another $42 million in assets. It's possible that the company has even more assets that have yet to be discovered.

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