NZ court rules on Kim Dotcom extradition

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Megaupload founder Kim Dotcom is liable for extradition to the United States for his alleged crimes, a New Zealand court has ruled.

However the Supreme Court has granted Dotcom and his co-accused the ability to challenge the decision through a judicial review.

Dotcom, along with business associates Matthias Ortmann, Bram van der Kolk and Finn Batato, have been fighting extradition since Dotcom's former home in Auckland was raided by New Zealand police in 2012.

US authorities have been trying to extradite the group to face charges related to the now defunct file-sharing website Megaupload.

The Supreme Court found an earlier ruling by the Court of Appeal was wrong in its finding that judicial review proceedings were an "abuse of power," the ruling issued on Wednesday said.

It said the arguments must be allowed before a final decision is made.

The court has asked for brief submissions identifying the issues which remain outstanding in the judicial review proceedings.

Unless the judicial review is successful, the four would be eligible for extradition on 12 charges, the 194-page ruling said.

A thirteenth charge, of conspiracy to commit money laundering, had "no available extradition pathway," the court ruled.

The extradition would then need to be signed off by justice minister Kris Faafoi, which could then become the subject of further legal action.