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US Federal prosecutors have warned that users of Megaupload.com would soon lose their data once they start deleting it by Thursday.

The lawyer of the website's founders however argued that deleting data from the servers would make his clients less able to defend themselves in court.

The company also added that millions of users stored their personal data in the website. The company hires companies from outside to store the data for a fee.

According to a letter filed in the US attorney's office storage companies Carpathia Hosting and Cogent Communications Group may start deleting data from Thursday.

Earlier US prosecutors blocked access to the website and charged seven men including its founder Kim Dotcom. The website is accused of having earned millions via illegal downloads of movies, music and other content. The government also froze the company’s money.

Megaupload attorney Ira Rothken said that at least 50 million Megaupload users could end up losing their data.