File-sharing website Megaupload.com founder Kim Dotcom has called on the New Zealand court to free a quarter of a million dollars cash in frozen assets for his living expenses.

The US officials indicated the piracy case as "among the largest criminal copyright cases ever brought by the United States."

The Internet pirate group is said to have costed more than $500m in damages to copyright owners by distributing pirated copies of movies, TV programmes and other copyrighted content without authorisation.

Dotcom, also known as Kim Schmitz, was arrested on January 20 and is on bail in New Zealand since last week, pending an extradition hearing.

Kim denied the charges and said the company will fight extradition, according to Reuters.

Dotcom, who had asked the New Zealand High Court for around NZ$220,000 to be released, was granted an interim payment of about NZ$32,000 to meet his immediate living costs.

As per the conditions of bail, Kim is confined to his Auckland home and isn’t allowed Internet access.