Megaupload founder Kim Dotcom's home seized by police

Megaupload founder Kim Dotcom's $4.3 million (£2.7m) New Zealand home has been seized by police.

Dotcom, who has been accused of internet piracy, money laundering and racketeering by US authorities, remains in custody following his arrest two weeks ago.

The confiscated property was not the internet millionaire's primary place of residence. Dotcom was living in a $25 million (£15.75m) mansion at the time of his arrest.

He was prevented from buying the larger home after failing the 'good character test' required for foreigners to purchase property in New Zealand, The New Zealand Herald reports.

Dotcom, who denies all charges against him, has been denied bail while he awaits a decision on his possible extradition to the US. A hearing is scheduled for February 22.

Megaupload was shut down on January 19 by US authorities, who claim that Dotcom and six of his associates have made more than $170 million (£107m) in illegitimate gains through the service since 2005.

Dotcom's business partners Bram van der Kolk and Finn Batato, who were arrested along with the site's co-founder, were granted bail after being deemed a minimum flight risk.