The Mega-Money World Of MegaUpload.com

MegaUpload is one of the most prominent file-hosting services on the Internet. It is owned by an unbelievably colorful individual who is probably better known for his multiple convictions for computer fraud, embezzlement and insider trading. He owns several luxury cars, for which he is currently under investigation, and has just acquired New Zealand’s most expensive house – a snip at just over $20m.



The file-sharing and anti-piracy world is full of interesting characters, most of whom remain hidden in the shadows. Some individuals are just too large to be contained though, and are either involuntarily thrust into the media spotlight by force or become deliberately high-profile by design.


While many people will be familiar with Pirate Bay founders Gottfrid and Fredrik due to them being featured in countless articles, the pair tend to shy away from too much direct publicity. The same cannot be said of Peter Sunde who rarely misses an opportunity to be in the spotlight, and to great effect it must be said.


The believed owner of MegaUpload, however, makes Peter Sunde look like a shrinking violet.


Kim ‘Kimble’ Schmitz is a quite unbelievable character. Born in 1974 in Germany, he grew to become a computer hacker, successful businessman and convicted criminal. In 1998 Schmitz received two years’ probation for hacking into corporate networks and abusing telephone services but the draw of big money was just around the corner.


In 2001 Schmitz pulled off a huge stock market bluff which netted him a small fortune. After buying shares worth hundreds of thousands of dollars in the almost bankrupt LetsBuyIt.com, he announced that he would invest 50 million euros in the company, but in reality he didn’t have the money. His declaration led to the biggest single-day rise on the German stock market which allowed Schmitz to sell his shares and pocket $1.5 million profit. He was arrested for insider-trading in 2002, sentenced to a term of 20 months and given a 100,000 euro fine.


Also in 2001, one of Schmitz’s companies loaned another one 280,000 euros and conveniently both went bust shortly after. Schmitz later pleaded guilty to embezzlement and received another two years probation.


A master of the PR stunt, Schmitz has previously faked his own suicide and also offered a $10 million reward for the capture of Osama Bin Laden. He also claimed to own a fleet of jets but apparently the planes he was photographed with belonged to other people.


A self-confessed car-nut, Schmitz entered the Gumball 3000 rally many times and actually came first in 2001, but his appearances in this event brought even more controversy. According to YouTube videos [ame="http://www.youtube.com/watch?v=EVkfbAXz7GA"]here[/ame] and [ame="http://www.youtube.com/watch?v=tYWCYMedpZQ"]here[/ame], Schmitz drove at 240 km/h on a public road in Belgium, ignored stop signs and drove in cycle lanes where one of his friends hit a pedestrian. In [ame="http://www.youtube.com/watch?v=fWSFtpP4Nbs"]another clip[/ame] he’s seen admitting to bribing the police and deliberately nudging a rival’s Porsche with his Mercedes.


But claims that he also did the private jet ‘trick’ mentioned above when photographed with, allegedly, other peoples’ cars, may have been a little off the mark.


According to a recent report from New Zealand, Schmitz is currently under investigation for using multiple names to register three luxury cars including a Rolls-Royce Phantom convertible. The cars are adorned with personal plates – GOD, WANTED and GUILTY.


The vehicles are registered to an address in Coatesville, New Zealand, which turns out to be a very special venue indeed – Schmitz’s newly-acquired mansion and the country’s most expensive house, a snip at just over $20 million USD.


The mega-money has clearly continued to roll in, with the addition of porn site Megarotic and the site most readers will be familiar with, MegaUpload. Although Schmitz’s connection to these projects has been denied in the past, he was the person who registered the site’s domain name in 2005 and there are many other links which are difficult to simply brush off.


MegaUpload has become more and more successful in recent times and its growing popularity make it a popular choice with those looking for an alternative to RapidShare. Much of MegaUpload’s system appears to be running from host LeaseWeb in The Netherlands and Carpathia Hosting in the US. In both locations they have many hundreds of IP addresses and servers.


While RapidShare’s huge growth has seen the company become the target for recent legal action, according to information received by TorrentFreak it appears that an apparent expansion of MegaUpload hasn’t gone unnoticed either. French anti-piracy group ALPA has been cranking up the pressure on LeaseWeb in what is being described as a “pre-litigation period”.


If the future of MegaUpload and Kim Schmitz is anywhere as colorful as the past, there will be yet more amazing stories to come.
 


At first I lol'd at the title, but then I was like "This guy is my HERO!!!!"
 
Seems like a smart dude.

Is he using his smarts in a good way? Well that's debatable lol but gotta admit he's pretty crafty.
 
Very nice post, I liek. Also have "Kim" as a first name, I bet he's a cross dresser.
 
In 2001 Schmitz pulled off a huge stock market bluff which netted him a small fortune. After buying shares worth hundreds of thousands of dollars in the almost bankrupt LetsBuyIt.com, he announced that he would invest 50 million euros in the company, but in reality he didn’t have the money. His declaration led to the biggest single-day rise on the German stock market which allowed Schmitz to sell his shares and pocket $1.5 million profit. He was arrested for insider-trading in 2002, sentenced to a term of 20 months and given a 100,000 euro fine.

epic hustle WIN
 
I remember this guy from a long time ago... It seems his website is gone though. Crazy that he's behind Megaupload too...
 
(article stolen from other site, posted in its entirety, original article not cited)

You like doing that a lot, don't you?

Don't bother copying/pasting full articles to make it look like you wrote something - Just link to the original and maybe make a comment...

And yes, Kimble is fucking awesome. Shady? Absolutely. Awesome? Yep.
 
I see nothing wrong with megaupload or megavideo. User upload the content so I can't consider them to be held accountable for copyright restrictions. Just like youtube if someone has copyright then send mega a removal email. That simple
 
i never did understand how they monetize file-sharing - unless you add PPI into the equation.
 
You like doing that a lot, don't you?

Don't bother copying/pasting full articles to make it look like you wrote something - Just link to the original and maybe make a comment...

And yes, Kimble is fucking awesome. Shady? Absolutely. Awesome? Yep.


FUCK! You busted me!
You've outed my clever plan to copy/paste articles and get all the credit for them.

...seriously.

Here's you're link, captain.
 
I followed that guy like a giddy little school girl in the late 90's and with the early gumball stunts including overnighting the replacement wheel by private jet.

After the 'kimvestor' stuff and the 'kimpire' stuff in the early 2000's he seemed to (from public perspective anyway) just VANISH.

I've long had conversations with friends wondering what that guy is up to, obviously a real bright dude.

Crazy if he's behind megaupload.

I hope he's balling
 
Very nice post, I liek. Also have "Kim" as a first name, I bet he's a cross dresser.
I'd be careful what you say. Kimble is not someone you want to piss off. He might get bored one day and decide to fuck up your world just for the fun of it.
 
that site has to be balling so hard... so many affiliates dominate search for ANYTHING tv/movie related
 
How many more times is this guy going to get 2 years probation before he gets locked up for a long time?
 
was always wondering what the most famous "hacker" from germany is doing lately now i know thanks :D

Well yeah he is a quite clever guy even though his marketing stuff seems impressiv what he has done in the computer world is just amazing :)