Let's be realistic about these storage services: Sure they offer a good way to store data for those who use it for the right purposes but the reality is that far too many of them KNOWINGLY allow users to upload pirated software, music and so forth. No matter what country a provider is located at, when it starts affecting the homebase (that country's finances come into play), is the only time law enforcement takes note.
As for the shutdown over "malware" ads, doubtful this was the case. There are far too many complaints against entire AS's to RIPE, APNIC, ARIN and so forth that most providers conveniently ignore them as the penalty for doing nothing is usually non-existent. Now, I can see someone moderating this down but ask yourself an honest question, if you spent money and time developing something, how would you feel (honestly) if you saw someone STEALING from you because they posted free copies on RapidShare or MediaFire or any one of these other filesharing sites.