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To me this is the biggest part of the story:
"Last month, a computer programmer and former colleague of Dotcom’s, Andrus Nomm, pleaded guilty to charges of internet piracy and struck a deal with US police, under which he agreed to testify against his former colleagues in exchange for reduced jail time."
Supposedly there are emails and other communications between Dotcom and others working for Megaupload where they talk about piracy and how much they are making off of it. If that is the case and this guy testifies against Dotcom he has serious trouble on his hands.
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