back to article It's a Mega blast: PayPal drops Dotcom's Mega

PayPal has pulled support for Kim Dotcom's Mega. Dotcom claims the decision was made following pressure on Paypal from Visa and Mastercard. Paypal, Visa, and Mastercard have been contacted for comment. In a statement Paypal refused to elaborate on the grounds of customer privacy saying only that it terminated the …

  1. Long John Brass

    DropBox

    Does this mean my content on DropBox is knowable?

    1. Silviu C.

      Re: DropBox

      Yes, dropbox stores the encryption keys on their servers.

  2. Anonymous Coward
    Meh

    Presumably, yes.

    Which is why personal local storage seems to be making something of a comeback - look at the cost of portable drives now, they look to be the lowest they've been for some time.

  3. Sebastian A

    Any cloud storage service

    that offers a password or key recovery service is not encrypted to such an extend that the NSA can't get into it. Only if it's client-side encryption with user-held cert is it secure-ish.

  4. Mark 85 Silver badge

    Given the way things are....

    I'm not sure if his tin-foil hat slipped or things happened the way they're described.

  5. Anonymous Coward
    Anonymous Coward

    Totally idiotic decision. From all I'd read MEGA were DMCA compliant but it seems the gripe is that they don't remove underlying files where deduplication is used (which sounds pathetic). So A uploads legit copy as backup, B uploads pirated copy, deduplication takes over. RIAA want A's legit copy removed... :boggle

    Sadly this guy and/or his businesses are in a damned if you / damned if you don't scenario. None of the decisions against him seem like due process, ie

    Court rules Dotcom as a 'fugitive' and takes his money - https://www.techdirt.com/articles/20150227/18171630168/us-court-rules-that-kim-dotcom-is-fugitive-thus-doj-can-take-his-money.shtml

    1. ratfox

      So A uploads legit copy as backup, B uploads pirated copy, deduplication takes over. RIAA want A's legit copy removed... :boggle

      Pirated copies are not usually similar to legit copies, since they omit all the crap. It's rather than the same pirated copy was available under multiple addresses, and the RIAA wanted a complaint for one single address to take down all the others.

      Allegedly, internal communication of Mega shows that they were deliberately not doing it. Also allegedly, you are not allowed to backup your legit copy…

      1. Schultz

        ... allegedly, you are not allowed to backup your legit copy…

        I guess that strongly depends on where you live.

        But maybe the US of A simply anticipates future international laws and preemptively ensures that the world is compliant.

        1. VinceH

          Re: ... allegedly, you are not allowed to backup your legit copy…

          "But maybe the US of A simply anticipates dictating future international laws and preemptively ensures that the world is compliant."

          FTFY!

      2. Anonymous Coward
        Anonymous Coward

        Please note that I said RIAA. Albums don't tend to come with the ridiculous enforcements / restraints that the MPAA insist on being used for dvds / blurays etc.

        All 'decent' ripping software uses a database of known checksums to ensure the rip matches other verifiable rips for archival reasons, which is a good thing for those backing up their purchases.

    2. Adam JC

      Deduplication?

      Can someone please explain to me in laymens terms how you can deduplicate encrypted data? If MEGA don't hold both encryption keys then surely they can't decrypt the data to deduplicate it? Forgive my ignorance if I am grossly wrong! :o)

      1. Anonymous Coward
        Anonymous Coward

        Re: Deduplication?

        Because mega employs Convergent Encryption (Same as Bitcasa/Taho-LAFS). It means if you know the hash and locator, you can decrypt the data. Presumably Mega stores the file as a hash, so it can tell if the file already exists. Shared links, I presume, contain the locator. Due to a quirk of convergent encryption, if you have the unencrypted file and any file encrypted with the same hash, you can recreate the locator. So the file becomes verifiable at the point of encrypting another copy. (And de-duplicatable as it can dump the file you just supplied, and give you the derived locator for the original encrypted file to replace your own.) It does mean that if a company wants to take down a file from Mega, it needs to provide the original source *file*, or the file's hash, and ask for the copy to be removed. (Google: "Drew Perttula and Attacks on Convergent Encryption" for a better write-up.)

        1. Adam JC

          Re: Deduplication?

          That's awesome, thank you!

          So, if the file was contained in a .RAR with a random text file thrown in, the hash would be different anyway making the deduplication impossible.

  6. Smitty Werbenjaegermanjensen - he was #1!

    Abuse of market power?

    In most civilised* countries, the supplier of goods and services can choose who to deal / not deal with, unless they are in a position of market power. Given that there are limited payment processing options, there could be an argument that this amounts to collusion to use the market power of PayPal, Visa and Mastercard to effectively try and put MEGA out of business. One more reason to hate Paypal I suppose.

    *yes, I know it's the USA we're talking about...

    1. Velv
      Black Helicopters

      Re: Abuse of market power?

      Abuse of market power is usually regulated by the government.

      Given the political pressures being brought it is highly likely the government had a hand in "asking" PayPal to drop some customers.

      No conflict of interest there then...

  7. frank ly

    "Paypal refused to elaborate on the grounds of customer privacy"

    But the customer obviously wants the truth to be told. Am I getting confused about who the 'customer' is?

    1. Anonymous Coward
      Anonymous Coward

      Re: "Paypal refused to elaborate on the grounds of customer privacy"

      Then again, there is always bitcoin. Sounds like the best option for this rotund, swash-buckling free-booter. Do any cinemas take bitcoin yet? Just wondering....

      1. Anonymous Coward
        Anonymous Coward

        Re: "Paypal refused to elaborate on the grounds of customer privacy"

        There are lots of people taking bitcoin. Mostly from bitcoin stores without your permission then vanishing into the night.

        1. Anonymous Coward
          Anonymous Coward

          Re: "Paypal refused to elaborate on the grounds of customer privacy"

          Touche,

  8. Anonymous Coward
    Anonymous Coward

    Tips hat...

    ...to the Bomb The Bass reference :o)

  9. Oninoshiko

    Why don't they

    just take payment in bitcoin?

    I mean, this is exactly the type of thing bitcoin was designed to work around.

    (note: I do still stand by my opinion that bitcoin is a fad)

    1. OzBob

      Re: Why don't they

      Because KDC hid his Bitcoin assets with his Mrs, who promptly started shagging his gaming protege and filed for divorce.

    2. J__M__M

      Re: Why don't they

      (note re; note: I do still stand by my opinion that facebook is a fad)

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