November 26, 2014 - 22:21 AMT
Megaupload founder Dotcom declares himself ‘broke’

Kim Dotcom, the founder of the seized file-sharing site Megaupload, has declared himself "broke", according to BBC News.

The entrepreneur said he had spent $10mln on legal costs since being arrested in New Zealand in 2012 and accused of internet piracy.

Dotcom had employed a local law firm to fight the U.S.'s attempt to extradite him, but his defense team stepped down a fortnight ago without explaining why.

Dotcom said he would now represent himself at the next bail hearing. He denies charges of racketeering, conspiring to commit copyright infringement and money laundering.

He told a conference in London, via a video link, that his lawyers had resigned because he had run out of money.

"The [US authorities] have certainly managed to drain my resources and dehydrate me, and without lawyers I am defenseless," he said. "They used that opportunity to try and get my bail revoked and that's what I'm facing."

The law firm Simpson Grierson, which had represented Dotcom, could not be reached for comment.

Dotcom's declaration comes seven months after he won back access to about $750,000 worth of property - including several of his cars - that had been taken at the time of his arrest. However, other assets, including dozens of bank accounts, remained frozen.

The German national's finances have also been put under strain after he helped bankroll a political party that failed to win a seat in September's general election in New Zealand.

"Before I started my political movement - the Internet Party - I was quite popular in New Zealand," Dotcom told the digital business conference.

"After I got involved in politics and the prime minister of New Zealand and his party attacked me viciously, labelling me a Nazi... and [saying] I'm only starting my political party to fight my extradition... New Zealanders unfortunately have bought into that narrative and today I'm a pariah. The witch-hunt worked, and everyone wants to see me burn, and next Thursday I might go to jail because of that."

Dotcom launched a follow-up online storage company, Mega, in 2013, and in March said it was valued at 210m New Zealand dollars ($164mln).

The business is set to be floated on New Zealand's stock exchange later this year.

However, he does not directly own a stake in the business himself and is no longer one of its directors.

His wife, Mona, does own 16.2% of its shares, but the two are separated. Dotcom revealed in June that she had moved into a guest house about 50m (164ft) away from Dotcom's mansion so their five children could still be close to their father.

Dotcom has revealed that his rent is pre-paid until mid-2015 and he plans to return to court "soon" to try to unfreeze more of his assets.

The next extradition hearing into his case is not scheduled until February 2015, providing him an opportunity to hire more local lawyers if he can obtain the funds.

The U.S. Justice Department claims Megaupload made more than $175mln before it was closed and cost film, TV and other rights-holders more than $500mln.