Demonoid shut down by Ukrainian authorities following DDoS attack

Demonoid, the Internet's largest combined BitTorrent site and tracker, has been shutdown in one of the biggest BitTorrent-related busts in recent times, according to TorrentFreak. ColoCall, the Ukrainian datacenter who hosts Demonoid, was forced to relinquish Demonoid's data to local authorities and terminate service for the site.

Just prior to the bust, the semi-private tracker and site had essentially been inoperative for more than a week due a massive DDoS attack. Demonoid's admin recently confirmed the site had been hacked in addition to the DDoS attack, but vowed the site would be brought back to life despite recent difficulties. He admitted though, it may take awhile to address the site's underlying issues. Unfortunately for Demonoid, local authorities may make the site's brief intermission a permanent one.

The timing is interesting; and not just due to the concurrency of the DDoS, hacking and investigation, but because of recent political events as well. TorrentFreak points out that the bust happens to coincide with the very first trip taken to the United States by Ukraine's newly appointed First Vice Prime Minister, Valeriy Khoroshkovsky. Curiously, while he visits the U.S., Khoroshkovsky will be discussing a very familiar topic: International copyright infringement. 

The First Vice Prime Minister’s visit follows a purported promise by the Ukrainian government to step up International copyright protection. With that and the timing of events in mind, TorrentFreak's sources theorize that Demonoid may have actually been a Ukrainian "gift" to show the U.S. that the country is serious about protecting intellectual property.

TPB fines to be used to fight more piracy cases, not refund artists

After a lengthy legal battle, last February the founders of The Pirate Bay were ordered by the Swedish Supreme Court to pay $675,000 to music labels in order to compensate artists who lost out on royalties due to piracy. Except that might not be the case at all, according toTorrentFreak, who say the compensation will be used to line the pockets of theSwedish IFPI, an anti-piracy body that claims to represent the worldwide recording industry.

As a result of the original verdict being upheld at the defendants' last avenue of appeal, Peter Sunde, Fredrik Neij, Gottfrid Svartholm and Carl Lundström were ordered to serve their jail terms as well as pay an additional €50,000 to several music industry companies, including EMI Music, Sony Music and Universal Music, specifically for compensating artists and rightsholders for the losses they suffered.

However, it appears that the music companies have struggled to collect the money due. According to an unpublished document, believed to be from the legal department at IFPI, they have been unable to collect any assets because the convicted have nothing of value in the country.

“We have filed applications with Sweden’s Enforcement Agency to secure assets to satisfy these funds. So far very little has been recovered as the individuals have no traceable assets in Sweden and the Enforcement Agency has no powers to investigate outside Sweden. There seems little realistic prospect of recovering funds,” the document read.

While that is troubling enough, what comes next will be nothing short of disturbing for the rights holders expecting compensation. “There is an agreement that any recovered funds will be paid to IFPI Sweden and IFPI London for use in future anti-piracy activities,” IFPI writes.

“As far as I know, no money ever won in a lawsuit by IFPI or the RIAA has even gone to any actual artist,” Peter Sunde of The Pirate Bay said upon hearing the news. This isn't the first time anti-piracy outfits have kept the money awarded either. The RIAA previously told TorrentFreakthat “any funds recouped are re-invested into our ongoing education and anti-piracy programs.”