The whole Mega.com is in-your-face thing Kim is doing with authorities.
The real bone with megaupload was, authorities held megaupload responsible for what it hosted - and Megaupload could not deny what they had on their servers (copyrighted stuff) - so the responsibility and liability lied with megaupload and caused its downfall.
With mega.com - the game is, mega.com will claim we don't know what is on our servers (since its encrypted at browser) so we can't be held liable for it - and this will stick!
I read somewhere comment that - its doesn't matter how strong the encryption is for mega.com users - all mega.com need it as a shield from legal troubles.
Clever!