The Internet Legend That’s Classified As A Terrorist

 

On January 20, 2012, New Zealand witnessed a spectacular police raid involving 76 officers and 2 helicopters on a $32 million mansion. The target of this high-profile operation was Kim Dotcom, who the FBI had labeled an international terrorist. What led to this extraordinary turn of events? The story of Kim Dotcom, the infamous founder of piracy sites MegaUpload and later Mega.nz, is a rollercoaster ride through the world of hacking, entrepreneurship, and piracy. In this blog, we delve into the life of this enigmatic figure and the series of events that made him an internet legend classified as a terrorist.

The Nerd Hacker

Kim Dotcom, born Kim Schmitz in Kiel, West Germany, on January 21, 1974, displayed an early affinity for hacking. However, we're not talking about simple Webkinz hacks; Kim was into the real deal. In his teenage years, he claimed to have hacked hundreds of U.S. companies, including NASA, the Pentagon, and Citibank. He would infiltrate their PBX systems, selling access codes for $200 each. Kim's audacity even led him to appear on German TV boasting about his hacking exploits.

He was not just limited to hacking; Kim sold stolen calling cards obtained from American hackers at a substantial profit. In 1994, this criminal activity finally caught up with him, resulting in charges including 11 counts of computer fraud and 10 counts of data espionage. Surprisingly, Kim received a two-year suspended sentence, narrowly avoiding jail time.

While this might have ruined the life of an average person, Kim embraced his criminal record, viewing it as a testament to his hacking prowess. He founded an IT consulting business, Data Protect, which garnered clients like Lufthansa. Kim's success didn't stop there; he lived a lavish lifestyle, owning supercars, mansions, and yachts, and maintaining a strong online persona.

The Rich Hacker

Despite his early brushes with the law, Kim couldn't resist the allure of illegal activities. He got involved in a pump-and-dump scheme with letsbuyit.com, a struggling e-commerce company, in 2001. Kim invested €375,000, claimed he'd secure €50 million in investments, and projected a turnaround, sending the company's stock soaring. But the investments never came, and Kim walked away with a €1.5 million profit from the manipulation.

He also started fintech companies, Monkey AG and Monkeybank, from which he embezzled hundreds of thousands of euros, putting him on the police's radar. To avoid facing the consequences, Kim fled to Thailand, launching a publicity stunt claiming he had hacked a mysterious individual's bank account. When that failed, he faked his own death online but was eventually deported to Germany and spent five months in jail, escaping with a 20-month suspended sentence.

Kim concluded that his troubles were rooted in Germany and relocated to Hong Kong in 2003, establishing a business called Trendax that promised to generate remarkable returns with AI. In reality, most of the $250,000 he spent on the company went toward design and theatrics, not a functioning AI system. Kim's real-life fortune was dwindling, even as he maintained his online persona.

The Criminal Hacker

In 2005, Kim formally changed his name to Kim Dotcom, marking the beginning of his foray into piracy. He rebranded his IT business as MegaUpload and launched a file-sharing website, which would eventually become one of the world's largest piracy sites, second only to The Pirate Bay.

To maintain anonymity, Kim registered MegaUpload under the alias "Kim Tim Jim Vestor" in Finland. But, behind the scenes, he was raking in millions. He decided to buy his way into New Zealand by investing $10 million in government bonds and, once in the country, acquired a $24 million mansion outside Auckland.

But Kim's presence was far from welcome in New Zealand. His efforts to joke about his criminal past with his neighbors only made matters worse. He sent letters to them, suggesting they could benefit from his criminal activities, which didn't sit well with the community.

MegaUpload was shut down in 2012, following FBI indictments for racketeering, copyright infringement, and money laundering. Kim was thrown into prison at Mt. Eden but released on bail after a month. His wife divorced him, and most of his assets were seized.

The Battle and Redemption

Kim didn't back down. He fought back, exposing the New Zealand authorities' illegal actions, which were taken under FBI pressure. He revealed that they had been spying on him, used excessive force in the raid, and unjustly seized his property. His lawyers relentlessly defended him, humiliating the authorities in the process.

In the midst of the legal battle, Kim launched Mega.nz, a file-sharing platform, exactly one year after MegaUpload's shutdown. Mega.nz offered end-to-end encryption and operated on a server-client network, making it difficult to identify pirates. Kim's defiant stance portrayed it as a legitimate competitor to the likes of Dropbox and Google Drive.

While Kim's legal battles continue, he has maintained a low profile, primarily enjoying his fortune and gaming. Kim Dotcom remains a controversial figure, a hacker turned entrepreneur turned internet legend, classified as a terrorist by some. His story is a testament to the complex interplay of technology, entrepreneurship, and the law in the digital age.