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Megaupload Users Face Possible Data Deletion

Megauploads is, or rather, was, known as one of the biggest file sharing sites around. The site was forced to close by U.S. prosecutors earlier this month, for allegedly promoting online piracy. Yet to make things even worse for the company, a new report suggests that Federal prosecutors are planning to delete all the data stored in Megaupload's servers, on Thursday.

The prosecutors defended their actions by stating that the firm allowed millions of illegal downloads of movies, music and other copyrighted content.

The decision taken by the authorities could come as a big blow for all those who were using the site for legitimate purposes - such as backing up their digital assets on Megaupload's servers.

In an attempt to help out their users, Megaupload contracted other companies to store the data, but in a report made by the Washington Post, the government has since seized all assets and bank accounts belonging to the company.

According to a letter filed in the case by the U.S. Attorney's office for the Eastern District of Virginia, Dulles based Carpathia Hosting and Cogent Communication Group may begin deleting Megaupload's data itself this coming Thursday.

The letter said that the government copied some of the data from the servers, but did not physically take them.