Kim Dotcom broke over copyright battle
UPDATE: Dotcom left his bail hearing in Auckland uncharged yesterday but will face the District Court again today. The allegations ofconspiring to commit money laundering, racketeering, conspiring to commit copyright infringement and enabling online piracy could put him back behind bars.
In what Kim Dotcom says could be his final public interview, the heavily indebted serial entrepreneur has revealed he has run out of money.
Speaking at the unBound Digital conference in London via Skype, Dotcom said he spent $US10 million in legal costs during his three-year battle defending criminal and civil copyright infringement charges from his previous cloud storage website Megaupload.
“My legal team resigned after I ran out of money,” Dotcom said. “I spent $US10 million to defend myself. They have drained all my resources.”
Kim Dotcom is based in New Zealand while he fights extradition moves to the United States to face charges involving conspiring to commit money laundering, racketeering, conspiring to commit copyright infringement and enabling online piracy.
On January 20 in 2012, the New Zealand government worked with copyright enforcers in the US to facilitate a raid on his mansion in Coatesville, Auckland. The raid involved 76 officers and two helicopters;$17 million in assets was seized.Dotcom has maintained the charges brought against him are false.
A year following the shut down of Megaupload, Dotcom launched Mega, a new file-sharing site which encrypts files in New Zealand via JavaScript prior to upload. Dotcom later sold the service to Auckland-based businessman William Yan, formerly known asBill Liu.
Then, a year after that in January, Dotcom launched music service Baboom, which he claimed was a cross between Spotify and iTunes. Dotcom cut his ties with Baboom in October, months before its scheduled launch next year, selling his 45% stake. Baboom’s chief executive Grant Edmundson said in October: “In the evolution of every company, a change of leadership, direction and focus is needed and this tipping point had been reached.” Baboom had valued itself at $45 million.
Another major expense of Dotcom's was his experiment with New Zealand politics. According to public records published by the NZ Herald, his Internet party cost $4.5 million.
Dotcom told the unBound Digital conference that the New Zealand government could use his current financial situation to revoke his bail during a hearing todayin Auckland.
"I am having a bail hearing where they are trying to lock me up and put me in jail again," Dotcom said. "This might be the last public appearance."
Dotcom’s bail conditions were tightened on Monday forcing him to remain within 80 kilometres of his home in Coatesville and restricting him from using boats or helicopters to travel.