Helmut Kiener, the German founder of the K1 hedge fund group accused of defrauding investors, has petitioned to be released from custody, arguing that he holds diplomatic status and there is a lack evidence against him.

A spokesman for the state prosecutors' office in Würzburg, southern Germany, said that a court in the town had received a motion protesting its decision 10 days ago to detain Mr Kiener after a criminal investigation was revealed.