I've never heard of Megaupload until recently, when all this talk of it closing down came about. I've done my research and it was a website, like any other site where millions of people visit to access and share music files. It happens to be one of the 13th most visited websites on the web (http://www.washingtonpost.com/business/technology/faq-what-is-megaupload/2012/01/20/gIQAIiqFEQ_story.html). I personally don't see why it was shut down, if its just another file sharing website. There are many websites still out there illegally distributing music and they're still in business. They are beginning to crack down on such websites though, so I don't see the rest lasting much longer. Piracy will soon be gone all together and we'll be forced to buy mp3s or Cds.
With the recent shut down of Megaupload, the website owner, Kim Dotcom, along with others were arrested. They are currently in a New Zealand jail awaiting their trials (http://www.azcentral.com/business/articles/2012/01/23/20120123Megaupload-executive-Kim-Dotcom-jailed.html). If Dotcom is found guilty this time around, he is looking at 20 years of jail time. It is more like a routine for this man, as he's already had many trials for the same reasoning, but this time they are really cracking down (http://freshinfos.com/2012/01/23/kim-dotcom-pirate-of-the-megaupload/).
Kim Dotcom, is the mastermind behind the whole megaupload scheme. The operation of distributing the copy-right files, such as music, movies and tv shows's racked in 175 million dollars. It has been rumoured, they would pay people who uploaded large amounts of copyright-protected files (http://www.azcentral.com/business/articles/2012/01/23/20120123Megaupload-executive-Kim-Dotcom-jailed.html).
Dotcom is also guilty of other things, besides being the king of piracy. He also hacked banks, utility companies and the popular game “Call of Duty: Modern Warfare 3” (http://www.azcentral.com/business/articles/2012/01/23/20120123Megaupload-executive-Kim-Dotcom-jailed.html).