The founders of Megaupload.com, the file sharing website shut down last week in one of the largest criminal copyright cases brought by U.S. authorities, will remain in custody until later this week a court in New Zealand has decided.

Judge David McNaughton said he decide on Wednesday whether to grant bail Dotcom Kim, convicted computer hacker accused of internet piracy and money laundering by the U.S. Department of Justice.

“Given the breadth of issues covered in the bail application and the seriousness of the issues, I’m going to reserve my decision,” Mr. McNaughton said.

Lawyer acting for Mr. Dotcom told a district court in Auckland that he was innocent of charges of internet piracy and money laundering.

“Mr. Dotcom emphatically denies any misconduct or criminal offenses, and denies the existence of a Mega conspiracy,” his lawyer Paul Davison told the court.

The New Zealand government, which works with U.S. authorities on an application of extradition, argued that Mr. Dotcom is an extreme risk of flight.
Mr. Dotcom and three other people were arrested by police in Auckland on Friday after they were charged by DOJ for alleged pedaling copyrighted material.

Appellate Megaupload and some sister site made over $ 175m in illegal profits from their extensive network of file sharing sites and cause $ 500m damage to copyright holders.
The U.S. is seeking extradition of Mr. Dotcom, a German citizen resident in Hong Kong and New Zealand, and his alleged co-conspirators Batato Finn, Mathias Ortmann and Bram van der Kolk.

Three other people, who are not living in New Zealand, have also charged by the U.S. but they remain at large.
The closing Megaupload drew a furious response from Anonymous, hacktivist amorphous aggregation, which took down several websites including one belonging to the New Zealand police.

The attacks helped escape to work with proposed legislation to combat online piracy a week ago looked tied to the approval of the U.S. Congress.

According to the DOJ complaint Megaupload is more than 150m registered users, 50m long daily visitors and accounts for four percent of total traffic in the world wide web.

Mr. Dotcom was hiding in a safe room of his $ 24m mansion rented with a loaded gun when police arrived in the country property in two helicopters on Friday, New Zealand police said in a statement.

He refused to leave the room and are cut by police officers, who seized 18 luxury cars, including a Roll-Royce Phantom and 1959 pink Cadillac in the raid.
The millionaire computer hacker, formerly known as Kim Schmitz, settled in New Zealand in 2010 after investing NZ $ 10m (U.S. $ 8m) in Government Bonds.

Opposition MPs in New Zealand have called for an investigation into how Mr. Dotcom is allowed to live in Auckland, according to local media.