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File sharing site Megaupload.com has been shutdown by the feds! The employees of the massive site were arrested and indicted “for moving mass quantities of illegal music and movie files online.” Swizz Beatz who is listed as CEO of the site, may be in hot water as well!

“We have never received any word that any artist has [individually] filed a take-down . . . [we have] legally binding agreements with the performers that appear in the video . . . They promised that they had the rights to enter into that agreement and it’s not interfering with any third-party rights.” says a Mega rep.

The NY Daily Post reports:

Swizz Beatz has Sean “Diddy” Combs, Kanye West and Will.i.am in hot water with their label by getting them to promote his site, MegaUpload. The CEO of the Internet company, Beatz — also a recording artist, producer and DJ — persuaded the stars to appear in a “Mega Song” video promoting his service, intended to send large media files. The catch is the music industry has been fighting against file sharing, accusing the services MegaUpload offers of supporting piracy. But after the starry promo appeared on YouTube last month, Diddy, Kanye and Will.i.am’s label, Universal Music Group, issued a “take-down notice” to YouTube, saying the artists’ performances were unauthorized.

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