Kim Dotcom May Be Banned from Starting Mega, a New File Hosting Site

US prosecutors are asking the judge to continue to freeze MegaUpload assets

While Kim Dotcom and co. are still stuck in New Zealand waiting for their extradition hearing, authorities in the US are doing the best they can to block any kind of defense MegaUpload might put up.

Not only that, US prosecutors warn that Dotcom shouldn't be able to restart MegaUpload or any similar company under the terms of his bail in New Zealand.

MegaUpload wants the charges against the company dropped, or at the very least that the block on its finances and operation be lifted temporarily.

This would allow it to mount a defense, by accessing funds currently blocked, and possibly release data back to its users.

The US prosecution has filed its documents with the court arguing against such a move. Their argument is that Dotcom is already barred from resurrecting megaUpload or from running a similar company. As such, they believe, lifting the block would achieve nothing.

While the legal procedures will continue for a few years, what's interesting here is the part where Dotcom may not be able to launch Mega, a new file sharing service that it's been teasing us about.

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