Both claim to have been maligned and unfairly targeted by vaguely defined ‘authorities.’ Caribbean-based bitcoin investor Roger Ver and current New Zealand resident Kim Dotcom were natural allies when it came to a supposed 2021 agreement setting up Fileshop, an online file-sharing service designed to encourage payment with bitcoin.
For more than a decade, Mr Dotcom has been resisting extradition to the United States where he faces breach of copyright allegations after sharing movies through his earlier file-sharing business: Megaupload.
Currently, he challenged repayment of a $15.1 million loan from Mr Ver suggesting this money has been lost in their unsuccessful Fileshop project.
The High Court was told of a 2021 agreement between the two with funds advanced to a company called American Dream Ltd, controlled by Mr Dotcom’s spouse.
The transaction was structured as a loan to American Dream, interest payable at six per cent. Unusually, the loan was unsecured, with terms acknowledging these funds could be used to buy a residential property on Mount Alfred Ridge at Glenorchy, near Queenstown, with Mr Ver having the right on default to demand either repayment or registration of a mortgage over Mount Alfred.
Mr Dotcom told the High Court this unusual arrangement was at Mr Ver’s request; he did not want ‘scrutiny from the authorities.’
Three years on, American Dream stopped paying interest. Because Mr Ver failed to stump up further capital allegedly promised for Fileshop, Mr Dotcom claimed in the High Court.
Mr Dotcom challenged Mr Ver’s court application to have a mortgage registered over Mount Alfred to now protect his earlier unsecured advance.
This loan was tied to their Fileshare project, Mr Dotcom said. It could not be enforced when Mr Ver had reneged on further funding, he claimed.
Associate Judge Gambrill ruled any claim Mr Dotcom may have against Mr Ver’s alleged failure to further support Fileshare is completely separate from Mr Ver’s contractual right to force registration of a mortgage over title to the Mount Alfred property.
He questioned why Mr Dotcom failed to produce in court any evidence of Fileshop’s existence.
American Dream was given two days to complete necessary paperwork for registration of a mortgage. Failing that, a High Court registrar was given authority to sign the necessary documents.
Ver v. American Dream Ltd – High Court (15.06.26)
26.179