Going to Jail for Your Users: Megaupload and Telegram

01 Oct 2024 (3 months ago)

Kim Schmitz's Early Career

Kim Schmitz, also known as Kimble, was convicted in 1998 for using stolen phone card information to make a profit of roughly €60,000. (2m51s)
In 2001, Schmitz was involved in a pump-and-dump scheme with a company called LetsBuyIt.com, where he made a profit of $1.5 million. (3m25s)

Schmitz moved to Hong Kong after the LetsBuyIt.com scheme, where he would later launch Megaupload. (3m41s)
At its peak, Megaupload was the 13th most visited website in the world and was used by 87% of Fortune 500 companies. (5m38s)
In 2011, Congress introduced the Stop Online Piracy Act (SOPA), which would have given the government more power to combat online piracy, but it was met with widespread opposition and ultimately withdrawn. (9m45s)
Kim Dotcom, the founder of Megaupload, was subject to a large raid by New Zealand police, facing charges including copyright infringement, racketeering, money laundering, and wire fraud. (11m18s)
Kim Dotcom's case raises questions about the legality of Megaupload and whether he should be held accountable for the actions of his users, especially considering the later implementation of end-to-end encryption in Megaupload's spin-off, Mega. (12m3s)

Pavel Durov, the founder of Telegram, faced arrest in France in mid-2024 on charges ranging from money laundering to complicity in child exploitation content, sparking debate about the balance between free speech, privacy, and online security measures like end-to-end encryption. (13m6s)
Pavel Durov, the founder of the Telegram app, was arrested in France. (16m22s)
Durov's arrest is due, in part, to Telegram's policy of allowing all opinions on the platform, which has led to it becoming a haven for extremist content. (17m30s)
Telegram is also being used for illegal activities, such as the sale of drugs and prostitution, and although Telegram has taken some action against these activities, some believe that the platform is not doing enough. (19m1s)
The government allegedly applied pressure to an unnamed founder to gain cooperation in cracking down on illicit activities on Telegram. (22m2s)

The founder of Silk Road received a life sentence while individuals who sold drugs on the platform remain free, leading to questions about the political motivations behind the arrest. (22m23s)
The arrest of Pavel Durov, the founder of Telegram, is contrasted with the founder of 4chan being employed by Google, prompting speculation about potential political motivations and lobbying efforts. (22m35s)
The founders of The Pirate Bay, a website that facilitated the sharing of copyrighted material, received prison sentences ranging from a few months to a year. (7m39s)