Megaupload founder Kim Dotcom to remain in jail

Scene from a New Zealand courtroom: Kim DotCom (at right) and others arrested January 19.

/ CNET,3News.co.nz/Screenshot by Jonathan Skillings

(CBS) - Megaupload's founder Kim Dotcom won't be back online anytime soon.

The eccentric businessman was ordered by a New Zealand judge to remain in jail. Bloomberg reports, a judge will rule on his bail request on Jan. 25, along with three other men. The four are scheduled to appear in court to face U.S. charges.

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German-born Dotcom, whose birth name is Kim Schmitz, was arrested with three men at his residence in Albany, New Zealand. Police acted at the request of the U.S. Federal Bureau of Investigations on Jan. 20.

The arrest scene was like something out of the movies.

According to Reuters, New Zealand police had to "cut Dotcom out of a safe room." He was found with 45 credit cards, three wallets and passports with different identities. It's also been reported that to room contained what looked like a sawed-off shotgun.

Police was also ordered to seize Dotcom's collection of 20 luxury cars, including a 1959 pink Cadillac, his art collection and NZ $10 million in local investments.

The U.S. is trying to get Dotcom extradited to the U.S. to face charges of Internet piracy and money laundering. One of the charges includes copyright infringement of films like "The Twilight Saga" and "Harry Potter and the Deathly Hallows - Part 2" that generated $175 million in income.

Prosecutor Anne Toohey is requesting a denial of release on bail because they believe Dotcom is an extreme flight risk. Dotcom has access to money and multiple identities.

Dotcom has a past of unscrupulous behavior that includes insider trading and embezzlement. FBI estimates put Dotcom's personal profit from piracy was $115,000 a day in 2010 alone.

Megaupload is a file-sharing site used for files too large to send via email. While the infrastructure of the site itself is not illegal, the Motion Pictures Association of America alleges the majority of files shared on Megaupload are in violation of copyright laws.

The site made money by charging a subscription free for faster downloads and advertisements.