Kim Dotcom's lawyer has accused the Crown of including irrelevant evidence to prejudice the public against his client.
During the first week of the extradition hearing -- which has now come to the end of its eighth week -- Crown prosecutor Christine Gordon, QC, acting for the US government, drew the court's attention to a comment by the internet entrepreneur calling New Zealanders "dumb".
"Aussies, just as dumb as kiwis," Dotcom allegedly told a co-defendant Matthias Ortmann.
"Hehe," Ortmann responded.
But Dotcom's counsel Ron Mansfield said the exchange had nothing to do with Megaupload being shut down in Australia.
"Rather, the evidence shows that this comment was in relation to Megapay, being a mobile phone payment service. This has nothing at all to do with any copyright material or infringement, and certainly nothing to do with Megaupload or Megavideo," he told the court this week.
"This reference is entirely misleading. Rather, it was chosen by the United States for the media attention this would no doubt have. This choice proved to be correct given the media attention that followed, but its inclusion is entirely irrelevant, misleading, and unreliable. Its inclusion was designed to unfairly attract prejudice against Mr Dotcom."
Mr Mansfield said the Crown had a responsibility to be honest and objective and by including the "misleading" comments it could be inferred that "the United States and its counsel are content to misled both the court and the New Zealand public".
The FBI laid charges in January 2012 when Dotcom and three others -- Ortmann, Bram van der Kolk and Finn Batato -- were indicted on 13 charges including copyright infringement, racketeering, money laundering and fraud.
The Crown said men knew the users of their website were providing access to copyright-infringing material and even encouraged it by plying the most prolific users with cash and online-privilege rewards.
"When distractions are stripped away it boils down to a simple scheme of fraud," Gordon said.
Mr Mansfield finished his submissions this week on behalf of Dotcom.
Grant Illingworth, QC, who represents both Ortmann and van der Kolk, is expected complete his rebuttal to the Crown case next week before the self-represented Botato has his say.
The hearing was initially set down for four weeks but will enter its ninth next week.