It has been three years since the U.S. government shut down a website called Megaupload, but there is still little progress in the criminal proceedings. Hearings on an extradition of suspects from New Zealand have been delayed several times, reports TorrentFreak.com. Meanwhile, several domain names including the popular Megaupload.com and Megavideo.com remain under the control of the U.S. government. In reality, they're now being exploited by 'cyber criminals.' Instead of a banner announcing that the domains have been seized as part of a criminal investigatio,n they now direct people to an adverting feed that often links to malware installers and other malicious ads.
It appears that the domain that the Department of Justice used as nameserver is no longer in control of the government. As a result, Megaupload and Megavideo are now serving malicious ads, run by the third party that controls the nameserver. Torrentfreak calls it quite a mistake for one of the top U.S. cybercrime units. It affects tends of thousands of people, as the Megaupload.com domain remains frequently visited.