"The United States government said Friday that even if the indictment of the Megaupload corporation is dismissed, it can continue its indefinite freeze on the corporation’s assets while it awaits the extradition of founder Kim Dotcom and his associates.
Judge Liam O’Grady is weighing a request to dismiss the indictmentagainst Megaupload because (in Megaupload’s view) the federal rules of criminal procedure provide no way to serve notice on corporations with no U.S. address. At a hearing in Alexandria, Virginia, he grilled both attorneys in the case but did not issue a ruling.
O’Grady speculated, with evident sarcasm, that Congress intended to allow foreign corporations like Megaupload to “be able to violate our laws indiscriminately from an island in the South Pacific.”
But Megaupload’s attorney insisted that this may not be too far from the truth. Megaupload, they said, is a Hong Kong corporation with no presence in the United States. He argued it was perfectly reasonable for Megaupload to be subject to the criminal laws of Hong Kong, but not the United States."