Megaupload founder granted bail - FT.com The man accused by the US of masterminding an alleged $175m internet piracy operation has been granted bail in New Zealand as he prepares to fight extradition. Kim Dotcom the German founder of file-sharing website Megaupload was released a month after his arrest when Justice Nevin Dawson ruled there was no new evidence that he had access to secret funds that would allow him to flee the country. Judge Dawson said that other than four Philippine bank accounts, which appeared to be empty, the US Department of Justice and Federal Bureau of Investigation had failed to provide any new evidence that Mr Dotcom had hidden funds. "A suspicion that because Mr Dotcom is very wealthy means that he must have assets he had not revealed is not evidence of further assets and cannot be used against him as before in his application for bail," Judge Dawson said. Prosecutors allege that Mr Dotcom was the ringleader of a group that had netted $175m since 2005 by copying and distributing music, movies and other copyrighted content without authorisation in an operation that cost copyright owners more than $500m. Mr Dotcom's lawyers said his company simply offered online storage and that he strenuously denied the charges. Mr Dotcom was previously denied bail because he was considered a flight risk, a decision that had been upheld after an appeal by Mr Dotcom in the High Court. Three other men accused of involvement in the scheme have already been granted bail in New Zealand. Justice Dawson said the fact that Mr Dotcom held a German and Finnish passport did not mean he was a flight a risk. "Absconding to either of these countries would not result in immunity from prosecution," he said. No evidence has been produced to show that the applicant has ever used any passport illegally, wrongly or to mislead anyone. Mr Dotcom was hiding in a panic room at his luxury mansion north of Auckland, when he was arrested by armed police on January 20. Officers seized 18 luxury vehicles, including a Rolls-Royce Phantom Drophead Coupe and a 1959 pink Cadillac, artwork, electronic equipment and up to NZ$11m in cash during the raid. Mr Dotcom's bank accounts were also frozen.