Updated: Megaupload bail decision reserved

Kim Dotcom and other defendants will remain in custody

Update at 4:10 pm: Kim Dotcom and the other Megaupload defendants may have to wait until Wednesday to find out if they can be released on bail.

Judge David McNaughton has reserved his decision until tomorrow or possibly Wednesday, until which time the defendants will remain in custody at Mount Eden remand centre.

Kim Dotcom, founder of the file sharing site Megaupload, appeared at North Shore District Court this morning for a bail hearing along with three other men involved in the case.

Dotcom, along with chief marketing officer Finn Batato, Mathias Ortmann, chief technical officer, Ortmann and Bram van der Kolk, programmer, were arrested on Friday by New Zealand Police who executed provisional arrest warrants requested by the United States Department of Justice.

All four defendants are expected to apply for bail pending an extradition hearing. Lawyers representing the US government have opposed bail for all four defendants.

Update at 12:50: The Crown has opposed bail for alleged pirate Kim Dotcom, who today appeared in the North Shore District Court facing charges of copyright infringement, and faces possible extradition to the US.

Crown Prosecutor Anne Toohey says if extradited, Dotcom could face 5 to 20 years in prison, and the US government has expressed it will seek the maximum penalty.

The Crown claims Dotcom poses a significant flight risk because of the funds that are available to him.

Dotcom's own lawyer, Paul Davison QC, says his client's funds have all been seized and has offered to the court a previously undiscovered Rabo bank account as a show of good faith.

As of 12:20pm, court has adjourned for lunch, and the hearing will continue after 1pm.

Update at 10:30: Judge David McNaughton has asked the media to leave the court while other cases are heard to reduce the queue, expected wait of 20 minutes.

Judge has asked all media to leave courtroom, he doesn't seem to like all this media attention. #megaupload

— Sim Ahmed (@simantics) January 22, 2012

This is a developing story, check back soon for updates.