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Megaupload founder Kim Dotcom can stay out of jail

February 28, 2012
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WELLINGTON, New Zealand—A New Zealand judge has upheld a ruling that the founder of shuttered file-sharing website Megaupload can remain free on bail until his August extradition hearing.

Auckland High Court Judge Tim Brewer on Wednesday turned down an appeal by New Zealand government lawyers, backed by U.S. prosecutors, to have Kim Dotcom returned to jail on the basis he is a flight risk. Dotcom, who is German, was last week granted bail after spending a month in custody following his January arrest.

He faces several charges in the U.S. including racketeering, which carries a maximum sentence of 20 years.

Under the conditions of his bail, Dotcom must remain confined to his Auckland home except for preapproved outings. He is also banned from using the Internet.

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