It’s only a matter of time. If they don’t release it, someone else will release something comparable.

I don’t think the original MegaUpload site hosted encrypted files, at least not in a zero-knowledge way. They also encouraged users to do things like upload their entire music libraries and had a searchable database of them called Megabox. They weren’t just a file hosting provider, they were in many instances encouraging their users to upload pirated content and had all of the tools to see what was being uploaded and what was infringing.

Membership in a criminal organization and several conspiracy charges

Right, they don’t close the library at night because they have some moral objection to people checking out books at 1AM, it’s just a question of how to allocate their resources. I believe some public libraries, such as Salt Lake City, are experimenting with staying open 24/7.