Megaupload CEO Kim Dotcom Granted Bail in New Zealand, But Banned From Net

Wednesday, February 22, 2012


Kim Dotcom poses beside a car in Hong Kong. Photo: Handout

AUCKLAND, New Zealand — File-sharing magnate Kim Dotcom was granted bail Wednesday morning New Zealand time, after the judge hearing his application ruled that the Megaupload founder has no access to funds to help him flee the country.

As part of the bail conditions, Dotcom must reside at his leased Coatesville, Auckland mansion. He cannot travel more than 80 kilometers, or 50 miles, from the Coatesville residence on which no helicopters are allowed.Earlier bail applications by Dotcom failed as he was thought to have access to helicopters and chartered private jet planes with which he could flee New Zealand.

Dotcom, who changed his last name to fit his outsize personality and online persona, is also banned from using the internet.

Lawyers acting for the U.S. government opposed the bail application, and claimed Dotcom has access to financial resources that make him a flight risk. However, Justice Dawson said in the North Shore District Court that as time had passed, authorities had not been able to show that Dotcom has further assets hidden, and the mere suspicion that he is very wealthy cannot be used against him.

Instead, Justice Dawson says Dotcom has every reason to stay to be with his family and fight to keep his assets. Justice Dawson also noted that while Dotcom has Finnish and German passports both those countries have treaties with the US that would allow for prosecution should he flee to either place.

Dotcom, who as jailed on January 20, has had his bank accounts seized, as well as his cars and the entire Coatesville mansion that he lived in. Police have allowed Dotcoms pregnant wife Mona and three children to live in the mansion, however.

The lawyers acting for the U.S. government wanted to ban Dotcom from using the Internet. Dotcoms lawyer said the condition isnt realistic, saying the Megaupload founder needs to contact his legal team in the U.S. to prepare his case. Justice Dawson sided with the U.S. government, and said Dotcom shouldnt have Internet access as he has the ability to use it for wrong purposes.

Dotcom is wanted by the U.S. Justice Department, whichaccuses him and six Megaupload associates of copyright infringement to the tune of $500 million. U.S. authorities are seeking to extradite Dotcom to Virginia to face trial on criminal conspiracy charges. He was arrested with four other Megaupload associates in a dawn raid by a large SWAT-style police force supported by two helicopters in January.

His associates, Bram van der Kolk, Finn Batato and Mathias Ortmann, won bail previously. All four now await a hearing to decide if they are to be extradited to the United States.


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