Currently, the $40 million is being held under restraining order, but Dotcom's legal team is trying to have those funds set aside accusing the secretary of justice in the country of not being truthful when the the application to seize was presented.
"We are applying for [the order] to be set aside because the court has misrepresented the true position," Dotcom lawyer Gerard McCoy added. "Did the secretary for justice put his cards on the table face up? This application is a clear example of the duty either being ignored or simply misunderstood."
McCoy says the prosecution withheld information during the application process, most notably that Megaupload could not even legally be served with a criminal complaint in the U.S. due to not having a U.S. mailing address. "None of this was ever brought to the attention of the judge. It was all put to one side and never raised," McCoy said. If reports are true, it took the judge less than 20 minutes to authorize the seizure after the application was submitted back then.
Source:
SCMP