"Developed password-cracking software in-house"
Brilliant. Have some amateur develop it, instead of using an established product written by an expert. Great idea.
Reminds me of the time (no joke) a Secret Service agent asked me to get data off of a PC that had been used for a credit-card scam. At the time I was (iirc) a college freshman or maybe sophomore, majoring in EE, who happened to program as a hobby. At the time I felt pretty flattered - only in retrospect did I realize how crazy this was. I had full, unfettered access to the PC, there was no copy, and I was programming directly on the box I was extracting evidence from. Granted, that was a long time ago, but it serves as an anecdote to show the level of professionalism these agencies demonstrate. I'm sure they have real experts, but too often the field offices seem to be playing Keystone Cops.
So here we have some field office taking down a whole data center. They're probably pretty impressed with themselves, they get some neat toys to play with, and they get headlines for their heroic crime-fighting efforts. Who cares about the collateral damage they've done to thousands of innocent people using the file-sharing service? At first glance, this reminds me of the Mega-debacle in the US, where they also took down an entire data center with very shaky justifications.
Prediction: The whole case will fall apart. Either because it was all a mistake and there is no evidence, or because they screw up whatever evidence they do have. Nonetheless, the customers will be out their data and the data-center will be driven to bankruptcy. Nonetheless, the officers involved will receive commendations.