For those who dont pay attention to the news too much.
MegaVideo and MegaUpload has been shut down by the US Government after a claim by movie industry and music industry that megavideo and megaupload has caused $500 million dollars.
The people who created/ran Megaupload have been arrested. The part that confuses me is, What gives the US government the right to arrest people who run a company thats not even based in the US?
Does US Law apply to the whole world?