As nearly everyone knows, MegaUpload was shut down earlier this year and Kim Dotcom's house was raided. We've since found out that those search warrants were invalid and his extradition hearing has been pushed back all the way to March 2013. However, that hasn't kept the US government from keep MegaUpload offline.
Have no fear as Dotcom is working on an alternative to that service, and it would appear to be nearing completion as he is offering early API access to developers. "The new Mega will offer one-click-encryption of ALL your data transfers, on the fly, easy to use, free of charge, TOTAL PRIVACY!" - Dotcom's Twitter
He has accused the government of picking on the wrong guy, so he will likely make sure that this new service will keep him from getting picked on. I have a feeling that that is the reason for the encryption. Either that, or so when he is raided, the police have nothing to work with.
In other news, his new music service, MegaBox, is due out later this year.