A Canadian judge on Thursday appeared skeptical of arguments made by prosecutors, questioning the validity of the case in the United States against Huawei Chief Financial Officer Meng Wanzhou.

"Isn't it unusual that one would see a fraud case with no actual harm, many years later, and one in which the alleged victim – a large institution – appears to have numerous people within the institution who had all the facts that are now said to have been misrepresented?" Associate Chief Justice Heather Holmes asked.

"The law is quite clear about that," Canadian prosecutor Robert Frater responded. "You yourself said that people within the institution may know, they may even be participants. It doesn't mean there is no fraud."

Holmes then said: "I'm simply suggesting that it may be unusual to have both of those features – no actual loss, and arguably, fairly extensive knowledge within the institution about the true state of affairs."

Frater said this was an issue for sentencing.

Meng was arrested at Vancouver International Airport in December 2018 on a U.S. warrant. She has claimed innocence and is fighting the extradition. Her lawyers will begin making their final arguments in her favor on Friday, and are expected to finish next week.

Hearings are set to wrap up next week and Holmes will likely issue an order on whether or not to extradite in the autumn, before Canadian Justice Minister David Lametti makes the final call.

Both Holmes' and Lametti's decisions can be appealed, which legal experts say means the case could drag on for years.

(With input from Reuters)