According to The Associated Press, federal prosecutors in Virginia have successfully shut down popular file hosting service Megaupload and arrested the website's founders following claims of breaking piracy laws. The report claims that Megaupload is responsible for causing $500 million in lost revenues to copyright holders, including record labels and others.

A total of seven people have been charged regarding Megaupload and four are in police custody, including founder Kim Dotcom, who earned nearly $100 million from the website in 2010.

Once this news broke out just a few hours ago, notorious hacking group "Anonymous" has begun attacking several United States government websites, including the Department of Justice. The hacker group is keeping everyone up to date via their Twitter account and says that an attack on the White House's website has already begun. In addition, the RIAA, Universal Music, and Motion Picture Association of America websites are down - all three companies have had legal disputes with Megaupload in the past.

We'll keep you updated on further news.