Dotcom says guns were to protect family

Kim Dotcom says the two firearms found during the police raid on his Auckland mansion last month were there to protect his family in case they were threatened.

The Megaupload founder has appeared in the Auckland High Court on Friday, seeking to overturn a decision to deny him bail.

While giving evidence, Dotcom told the court the firearms were on the property to stop potential attackers.

Dotcom was not licensed to have the firearms and he says he was not trained in how to use them.

Dotcom says the measure was discussed with the head of his security team, Wayne Tempero, who is facing firearms charges.

While being questioned by the crown prosecutor acting on behalf of the United States, Anne Toohey, Dotcom said the guns were there for the "worst case scenario in case someone was trying to attack us".

Dotcom says he instructed that the guns be loaded with rubber bullets.

However, while giving evidence, Tempero said the firearms were going to be used for skeet shooting, though the issue of using them for defence had been raised.

Dotcom, 38, was denied bail in North Shore District Court last week, with Judge David McNaughton ruling there was a real and significant possibility the German multimillionaire would flee.

However, Dotcom says he has no intention of leaving the country.

Dotcom, along with three co-accused, face charges of engaging in a racketeering conspiracy, conspiring to commit copyright infringement, conspiring to commit money laundering and criminal copyright infringement, according to an indictment filed in a US court.

Bail has been granted to two of Dotcom's co-accused, Finn Batato, 38, of Germany, and Dutch national Bram van der Kolk, 29, who holds New Zealand residency.

The other accused man, Mathias Ortmann, 40, of Germany, is expected to find out on Friday if he has been granted bail.

It is alleged the group amassed $NZ216 million ($A167.8 million) in criminal proceeds through the website.

The FBI is seeking to extradite the quartet to the US, with extradition papers expected to be filed on February 22.

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