Kim Dotcom is refusing to hand over passwords to protected data on the machines seized during a raid on the Megaupload offices, while demanding the computers be returned to him so that he can use them in his defence. According to his legal team, there is CCTV footage on them that shows excessive police action during the original raid.
His lawyers are also questioning the legality of the raid, with many believing that the file locker site was being used as a bargaining tool between authorities and copyright lobbyists.
During the hearing Mr Dotcom learned that the data on the machines - still encrypted - had been sent to US authorities, despite being given assurance that this wouldn't happen without him being informed beforehand.
"Our concerns are that the United States will have New Zealand take all the data and all the hard drives that have been confiscated and remove them from the New Zealand jurisdiction, essentially making it so the New Zealand judiciary cannot exercise New Zealand's views, New Zealand's values in fairness and due process, and bring it all over to the United States so that it cannot be used in the extradition hearing," said Dotcom's lawyer Ira Rothken while speaking with Radio New Zealand.
While the case on the island nation is continuing unabated, things have gone quiet on the Western front, with perhaps Dotcom's denial to hand over passwords causing a bit of a roadblock for US authorities.