The Megaupload saga continues, this time with Megaupload complaining that the US government lied in order to get a search warrant. According to the motion, a recently unsealed search warrant shows that the US Department of Justice asked Megaupload to keep 39 copies of copyrighted movies on its servers for an investigation.

The part they didn't mention? It was an investigation into Megaupload. They then used the fact that the files were still on Megaupload's servers as primary proof that the company knowingling harbored copyrighted content:

By all indications, the Government tapped Carpathia to convey the June 24, 2010 warrant to Megaupload, thereby planting what the Government would later claim, for purposes of this case, amounted to criminal knowledge that Megaupload was hosting infringing files, while simultaneously lulling Megaupload into thinking it was not a target of its ongoing investigation (which the Government dubbed its 'Mega Conspiracy' investigation) - and, what is worse, affirmatively leading Megaupload to understand from the warrant's sealing order and Carpathia's representations that Megaupload should take no action with respect to the infringing files lest it tip off the ostensible targets. In sum, the Government came to paint as criminal the very course of conduct by Megaupload that the Government had induced in requesting good-faith cooperation with an investigation that was to remain secret. Most incredibly of all, however, the Government then came before this Court, ex parte, with a selective, distorted account whereby the Government omitted mention of facts - well known to the Government - indicating that Megaupload was of an innocent state of mind in cooperating with what it was told was an ongoing, secret investigation of the infringing files at issue.

This is just the latest in a line of accused misconducts committed by law enforcement. Dotcom continues to fight the charges and is launching the new Mega upload service on January 20.