The founder of the online storage website Megaupload.com, Kim Dotcom, has been denied bail by a court in New Zealand.
Dotcom, also known as Kim Schmitz, is a German national. Him and three others were arrested in Auckland on January 20 by the New Zealand police acting in concert with the US FBI.
US prosecutors have accused Megaupload of being a front for online piracy, inflicting copyright holders with revenue loss of more than $500m. Schmitz argued that his company only offered online storage.
Judge David McNaughton declared that Schmitz posed a flight risk, due to his substantial amounts of cash and several false identities. A gun was also found at Dotcom’s house during the raid.
Schmitz will be remanded in custody till February 22.
Dutch police have also arrested a fifth suspect, Andrus Nomm, 32.
