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Police seize MegaUpload founder's New Zealand home

Authorities in New Zealand continue to haul away property belonging to Kim DotCom, founder of MegaUpload, who U.S. authorities accuse of piracy and causing over $500 million in damages to copyright owners.

Greg Sandoval Former Staff writer
Greg Sandoval covers media and digital entertainment for CNET News. Based in New York, Sandoval is a former reporter for The Washington Post and the Los Angeles Times. E-mail Greg, or follow him on Twitter at @sandoCNET.
Greg Sandoval
2 min read
A photo of the entrance to the New Zealand mansion Kim DotCom leased following his January 19 arrest. Police today seized a smaller home owned by DotCom that adjoins the mansion. France Komoroske

The $4.3 million New Zealand home owned by MegaUpload founder Kim DotCom was seized by police in that country today, according to published reports.

The home seized was not the grand $25 million mansion where the MegaUpload founder was living and had leased prior to his January 19 arrest by more than 70 police officers. He was prevented from buying that larger home because he failed to pass the "good character test" required for foreigners to buy property in New Zealand, numerous publications in that country are reporting tonight.

But DotCom, who the United States has accused of Internet piracy, money laundering, and racketeering, was allowed to acquire a smaller property that adjoins the mansion, reports the New Zealand Herald.

The property was not amongst the assets that police confiscated two weeks ago, when an elite group of police officers arrested him and hauled away numerous cars, millions in cash, and other possessions.

The United States is seeking to try DotCom in a federal court in Virginia and an extradition hearing is scheduled for February 22. DotCom has denied breaking any laws. He remains in police custody. According to the U.S., MegaUpload made DotCom and six other associations over $170 million since 2005.

MegaUpload is a cyberlocker service that many people used to store and access pirated videos and films. U.S. officials, which have shut down the service, allege that MegaUpload was designed to help people pirate while attempting to appear like a legitimate business.