The latest twist in the Megaupload saga is here, and it comes courtesy of a New Zealand court. Reuters reports that High Court Judge Justice Helen Winkelmann ruled the search warrants used to raid Kim Dotcom's property illegal because they weren't specific enough about the offences in question.

"The warrants did not adequately describe the offences to which they related. Indeed they fell well short of that. They were general warrants, and as such, are invalid."

The court also decided that the FBI did in fact act outside its powers when seizing the Megaupload founder's computers and data. Under international law, New Zealand's Attorney-General must grant foreign authorities like the FBI power to take evidence out of the country. It's difficult to tell at this point what effect the ruling might have on the ongoing case, but it could prove an obstacle to the US's ongoing efforts to extradite Dotcom on money laundering and copyright theft charges. The New Zealand police is currently considering its options.