Kim Dotcom's bail appeal rejected

MEGAUPLOAD founder Kim Dotcom has been denied bail after an appeal to the New Zealand High Court.

The 38-year-old founder of the file-sharing website at the heart of a global internet piracy case was refused bail last week because the judge considered him a flight risk, with yesterday's High Court hearing an appeal against that ruling.

After hearing evidence, the High Court rejected his appeal, TVNZ reported, with Dotcom, who legally changed his name from Kim Schmitz, to remain behind bars until February 22 when US authorities are expected to file extradition papers.

Dotcom, who was arrested last month on the request of US authorities, testified at the appeal hearing that he had no intention of fleeing the country - potentially back to his native Germany which does not have extradition to the US - because authorities had frozen his accounts, The New Zealand Herald reported.

• "I want to be absolutely clear about this, there are no funds left anywhere, everything has been seized," he said.

"I will not run away. I want to fight these allegations on a level playing field. I have three little children. My wife is pregnant with twins. I just want to be with them.

"I'm aware that if I go to Germany I would be unable to unfreeze my assets. What I want to do is stay here to fight and get my money back. What would I do in Germany with five kids and a wife with no money?

"It is not an option for me."

In upholding the earlier court's ruling, Justice Raynor Asher referred to the court's reliance on "the extraordinary features" of Dotcom's life, which included "his great wealth, taking on an unorthodox route, his connection to Germany and his incentive to get there."

The FBI is seeking to extradite Dotcom and several co-accused to the US to face charges of conspiring to commit racketeering, conspiring to commit money laundering, copyright infringement, and aiding and abetting copyright infringement.

So far investigators have frozen more than $30 million in bank accounts, government bonds and expensive cars, the Herald reported, with Crown prosecutor Anne Toohey, acting for the US government, alleging there could be more money.