MegaUpload warned Paypal not to do business with infringing filehosts...
 

"Our legal team in the US is currently preparing to sue some of our competitors and expose their criminal activity. We like to give you a heads up and advice [sic] you not to work with sites that are known to pay up loaders for pirated content. They are damaging the image and the existence of the file hosting industry (see what's happening with the Protect IP Act). Look at Fileserve.com, Videobb.com, Filesonic.com, Wupload.com, Uploadstation.com. These sites pay everyone (no matter if the files are pirated or not) and have NO repeat infringer policy. And they are using PayPal to pay infringers."

http://arstechnica.com/tech-policy/n...megaupload.ars

Paypal doesn't care, and won't take action.

Interesting to see what all of Megaupload's BS attempts to appear legitimate amounted to. In the end it could not save them. Remind you of anyone we all know who likes to try appear legitimate and is very big in our industry? <strokes chin>