Kim Dotcom says a Chinese fraudster, the New Zealand government and Hollywood have taken over his company


Kim Dotcom

Reuters/Nigel Marple

Kim Dotcom is planning to launch Mega 3.0.

MegaUpload founder Kim Dotcom is claiming that his newest site,, has suffered a hostile takeover and can no longer be trusted with people's data.


Dotcom answered a question about the safety of the site during a Slashdot Q&A.

Dotcom is still embroiled in a US court case against file-sharing site MegaUpload. He is living under house arrest in New Zealand while US officials try to extradite him for money laundering and copyright allegations.

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He launched cloud storage site Mega in New Zealand in 2013, but says that he is no longer involved in its management or as a shareholder. Instead, he says, it is being run by a Chinese fraudster, the New Zealand government, and Hollywood.

He explained: "The company has suffered from a hostile takeover by a Chinese investor who is wanted in China for fraud. He used a number of straw-men and businesses to accumulate more and more Mega shares. Recently his shares have been seized by the NZ government. Which means the NZ government is in control."


"In addition Hollywood has seized all the Megashares in the family trust that was set up for my children," he added. "As a result of this and a number of other confidential issues I don't trust Mega anymore. I don't think your data is safe."

As with many of Dotcom's claims, these are difficult to substantiate. According to a TorrenFreak interview with current Mega CEO Graham Gaylard and commercial chief Stephen Hall, his statements can be rather overblown.

The Mega execs, who obviously see things differently, say that the company doesn't have anything to do with the 6% Dotcom family trust shareholding controlled by Mr Dotcom's ex-wife, which is currently subject to a High Court freezing order requested by several Hollywood Studios in 2014.

They also said that Mega is a New Zealand company privately owned by 17 local and international investors, and that Dotcom hasn't had a managerial role since he resigned as director in 2013.

Dotcom went on to reveal that once his non-compete clause runs out at the end of this year he plans to create a competing non-profit open source service.


"I want to give everyone free, unlimited and encrypted cloud storage with the help of donations from the community to keep things going," he said.

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