The denial means that Kim Dotcom must remain in jail until his first hearing in a U.S. extradition request, scheduled for Feb. 22.
Dotcom told the Auckland court that he would not flee New Zealand and wants to fight to get back his money, some of which authorities seized last month.
He also complained that he had received unwanted letters from female prisoners and a phone call from a man posing as a prosecutor, according to reports by media outlets.
A government lawyer said during Friday's hearing that a known forger tried to visit Dotcom.
U.S. authorities claim Megaupload facilitated millions of illegal downloads. They are trying to extradite Dotcomand three colleagues on racketeering charges.