Reprieve for tens of millions, as Megaupload struggles to deal with frozen bank accounts, and a hosting company's bill that as a result has gone unpaid.
Managers at both firms have agreed to preserve the vast quantities of data uploaded by Megaupload users for a minimum of two weeks, said Megaupload's U.S. attorney, Ira Rothken on Twitter.
It looked as though data could start being deleted as soon as Thursday. But this deal now gives the U.S. authorities and Megaupload more time to iron out an agreement over how to handle the issue of end users' data.
Many had complained that despite Megaupload being used by some for piracy and illegally downloading copyrighted material, many files uploaded belong to the copyright owners, such as family photo collections and personal documents.
But Carpathia Hosting, one of Megaupload's hosting companies, said in a statement that it: "does not have, and has never had, access to the content on MegaUpload servers and has no mechanism for returning any content residing on such servers to MegaUpload’s customers."
With an estimated 50 million people once using Megaupload's service, the file-sharing company in the top 100 most visited websites on the Web, according to Internet traffic analytics firm Alexa.