I'll assume you all know what Megaupload was.
It's very clear that the service facilitated piracy and copyright violation. So most people wouldn't find the arrests unexpected.
But the way I see it, these arrests can't stick as long as the defense shows that all effort was made to remove content as soon as it's reported. These are the restrictions of the DMCA. The owner and staff will walk and the site will go back online.
And that's exactly what the government wants.
The government wants to make a case for SOPA and PIPA. They want to show that without these new laws, we can't stop sites like MU from operating, but with these measures in place, it's easy to shut this type of site down. Combine that with the porn connection, and the public in general will tend to agree with the government's position.
But what about the side effects?
Let's say someone here posts a copyrighted work, like a photo of Marissa Miller with an iPod strategically placed on her nude body. The copyright is owned by Sports Illustrated.
Even if the site administrators act quickly to take the offending image offline, under SOPA and PIPA, that doesn't matter. Kaspar and the site owners can be arrested and charged. This site can be shut down. It doesn't matter that the image is actually hosted on another site. It is served by the AI servers, and that's enough to get them according to SOPA.
It gets even worse.
Let's say someone sends a URL to the location of a copyrighted work through AI's instant messaging system. Without spying on our "private" messages, Kaspar et al can't even know a violation was made. It doesn't matter whether they can know or not. The URL was served using the AI servers. Arrests possible. site could be closed.
This is the end of the Internet, folks. The only way to comply wi SOPA and PIPA would be to stop users from posting any information at all. No more messaging. No more image posting. No more forums. No more Internet.
But don't be surprised when Megaupload goes back online soon and all charges are dropped. It's all part of the plan.
An aside... With all that money, don't you think the guy could hire a full-time personal trainer and nutritionist? Damn.
Oops. Another copyright violation. Sorry, Kaspar! Hope you don't get arrested.