The Crown is battling to keep property seized during police raids on Kim Dotcom's Coatesville mansion two years ago.
A lawyer for Mr Dotcom has tonight confirmed to ONE News they have been given notice the Crown is appealing a High Court decision effectively ordering the return of the seized assets.
Earlier this month, the High Court declined an order that would have granted police permission to keep the assets, including cars, cash and computers, for another year.
A short time ago Dotcom tweeted: "Breaking News: Crown Law appeals High Court ruling to return assets to my family. Government bullying continues."
Today's development comes on the last day the Crown had to appeal the decision.
During the initial search of Dotcom's rented mansion in January 2012, police took dozens of items including anything that could store digital data, meaning home videos, CCTV footage and data from the swimming pool heating system were seized.
The property was seized under a foreign restraining order made by the United States District Court just two days before the raid. Last year, a High Court judge ruled the search warrants used to confiscate the property were invalid.
Cash, a collection of luxury cars and jewellery were among the other items taken.
Dotcom, 38, founded file-sharing site Megaupload and stands accused of breaching copyright laws costing owners more than US$500 million.
US authorities are attempting to extradite him to the US to face charges.