Internet piracy accused Kim Dotcom is suing the New Zealand government for a slew of billion-dollar damages including the profits lost from being prevented from purchasing the Auckland mansion he rented.

Crown Law confirmed they had been served the papers on Friday.

The court documents reveal that Mr Dotcom is arguing the arrest warrant was invalid as the application was based on a US indictment that had been superseded by another, meaning the former ceased to be legal.

Mr Dotcom is also claiming there are no reasonable grounds to believe the offences were extraditable as there is no New Zealand equivalent to the US charges of copyright infringement.

He is now suing the New Zealand government for negligence on both the arrest warrant, request for surrender, misfeasance (wrongful exercise of lawful authority) and maliciously procuring an arrest warrant.

For each of these actions, Mr Dotcom is claiming damages in the billions, including the lost profit he would have made on the mansion he was intending to buy at the time of his arrest.

He was intending on buying the expansive residence North of Auckland for $11 million which was valued at $32.5m in 2016.

He is also claiming $10 billion he estimates from being unable to put Megaupload on the Hong Kong stock exchange.

A Crown Law spokeswoman says they are taking time to consider the documentation and there is little more they can say on the matter.