> There really aren't any options that don't end with him extradited.
The high court of NZ has ruled the search warrants used were illegal[1]. IANAL, but I would think that's grounds enough for the case to be thrown out and for NZ to never extradite him.
I would expect if the High Court of New Zealand decides the entire case is illegal and won't extradite him, they would stand up to the US/DOJ/FBI and try to get his assets unfrozen, property returned, etc. etc. If the US/DOJ/FBI don't do so, they would be breaking NZ law.
You might say the US will just laugh in their faces, and while that might be true, it would be horrible publicity (which the US clearly doesn't need right now) and would probably just provide another reason for the rest of the world to give the US the middle finger in general.
It wouldn't be the first time little NZ has stood up to the big guys [1] (see specifically 1984)
(This was a very, very big deal when it happened)
Given how much of the world's money flows through US banks, New Zealand could give everything back it wants to and still leave Dotcom broke (especially after legal fees) and without a company.
New Zealand is awesome. It is on my list of most desirable countries to live in. But if the US doesn't release the holds they have, I question whether Dotcom will really get anything back. Remember, he is renting his house in NZ. It's not like he has a big chunk of money in a mansion that he can sell.
He's not an idiot. Maybe he has to give up his multi-million dollar house but him and his group of highly-technical colleagues have not a lot holding them back this minute from starting over, aside perhaps initial funding for hosting.
The high court of NZ has ruled the search warrants used were illegal[1]. IANAL, but I would think that's grounds enough for the case to be thrown out and for NZ to never extradite him.
[1]http://torrentfreak.com/megaupload-search-warrants-ruled-ill...