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Mega was founded by Kim Dotcom but the site bears little resemblance to his now defunct Megaupload. Perhaps most importantly, Mega was the most-scrutinized file-hosting startup ever, so every single detail simply had to be squeaky clean. As a result the site took extensive legal advice to ensure that it complies with every single facet of the law. Nevertheless, NetNames took the decision to put Mega in its report anyway, bundling the site in with what are described as some of the market’s most dubious players. This was not received well by Mega CEO Graham Gaylard. In a TorrentFreak article he demanded a full apology from NetNames and Digital Citizens Alliance and for his company to be withdrawn from the report. Failure to do so would result in “further action”, he said.

Further evidence of overeager and illegal police work emerged Thursday in New Zealand as Inspector General of Security and Intelligence Paul Neazor released a report on the illegal bugging of Kim Dotcom and Megaupload programmer Bram van der Kolk. Two GCSB officers were present at a police station nearby Dotcom’s mansion as the raid took place.

Police weighed several options for the raid named “Operation Debut,” undertaken at the behest of US authorities, and sought to take Dotcom and associates with the “greatest element of surprise” and to minimise any delays the in executing the search and seizure operation should the German file sharing tycoon’s staff be uncooperative or even resist officers on arrival.

The police planners also noted that “Dotcom will use violence against person’s [sic] and that he has several staff members who are willing to use violence at Dotcom’s bidding” after a U.S. cameraman, Jess Bushyhead, reported the Megaupload founder for assaulting him with his stomach after a dispute. Based on Dotcom’s license plates such as MAFIA, POLICE, STONED, GUILTY, and HACKER, police said this indicates the German “likes to think of himself as a gangster” and is “described as arrogant, flamboyant and having disregard for law enforcement.” However, the documents show that Dotcom had only been caught violating the speed limit in New Zealand. The request for assistance from the STG notes that the US investigation against Mega Media Group and Dotcom was started in March 2010 by prosecutors and the FBI. According to the documents, US prosecutors and FBI “discovered that the Mega Media Group had engaged in and facilitated criminal copyright infringement and money laundering on a massive scale around the world.” FBI in turn contacted NZ Police in “early 2011," requesting assistance with the Mega Media Group investigation as Dotcom had moved to New Zealand at the time.

That’s more than 10,000 files per minute….

The continuing debate about the NSA’s mass-surveillance is also likely to have helped Mega. Unlike other popular cloud hosting services, Mega encrypts all stored files so they can’t be snooped on. Similarly, the fact that former U.S. Secretary of State Condoleezza Rice joined Dropbox may have also had an impact according to Dotcom.

a bail revocation application is underway which could put back behind bars as early as next week.

Last week it was revealed that his New Zealand legal team had backed out of their arrangement to defend the Megaupload founder.

A full report on developments isn’t possible due to a news blackout, but Crown Prosecutor Christine Gordon told the Court that an application had been made to have Dotcom’s bail revoked after an apparent breach of conditions.