The Crown has indicated in court this morning that it will appeal a decision that said the search warrants on Kim Dotcom's mansion were illegal.
Last month a High Court Judge made the ruling after police seized property from Dotcom’s Auckland home during a raid at the beginning of the year.
The court ruled that the raid was illegal, because police had used the wrong search warrants.
The Megaupload founder and three other men were arrested at Dotcom's $30 million rented mansion in Coatesville, Auckland, in the police raid on January 20.
They face charges in the US of racketeering, copyright infringement and money laundering and are awaiting proceedings to extradite them to the US.
The US Government is seeking to extradite Dotcom on the charges.
Dotcom has denied any wrongdoing and has set up a website kim.com labelling the ordeal “the Megaupload scandal”.
An extradition hearing is scheduled for March 25, 2013.
RadioLIVE / 3 News