Megaupload’s life has been extended, at least for two more weeks.  It was reported yesterday that the U.S. Attorney’s Office for the Eastern District of Virginia filed a letter under the case stating that Megaupload files stored in Carpathia Hosting Inc. and Cogent Communications Group Inc. can be deleted as early as Thursday, since the authorities already collected the evidence they needed.

But it looks like Carpathia and Cogent will be deleting Megaupload’s files because the company can no longer afford their services, since their funds were frozen by the authorities, and not because they were ordered to delete the files.

Megaupload attorney, Ira Rothken, was concerned that they would lose crucial evidence needed for the case if those files were deleted.  Rothken worked with prosecutors to prevent the files from being deleted and was somewhat successful.  Managers of Carpathia and Cogent agreed to delay file deletion at least for two weeks.

“The hosting companies have been gracious enough to provide additional time so we can work out some kind of arrangement with the government,” Rothken said.

There is now hope for legit users to acquire their files, though the government is keeping mum about the situation, making the future of the files still uncertain.

Here’s an intriguing thought, forget about Carpathia and Cogent deleting the files because they are not getting paid and just pretend that they will be storing them for free.  Why would the US Attorney’s Office order destruction of evidence?  Are the collected files enough to hold up in court, or are those not enough to convict the alleged perpetrators? And the files being held at the storage companies– could it also be enough to set them free?

It adds another layer to this building saga that spills into consumer privacy matters, piracy, the legal capabilities of several countries and the true cost of data storage.