Son was indicted under seal in Washington in August 2018 on child pornography and money laundering charges. Users could join the site free with a user name and password, allowing them to download videos. They earned “points” by uploading videos and referring new users. They could buy a “VIP” account that allowed unlimited downloads for six months if they exchanged Bitcoin valued at $353 in March 2018, the indictment said.
The server for the site was run out of Son’s bedroom, according to the indictment.
U.S. authorities disclosed information about three dozen of the accused site users, including former federal agents and a Georgia man who videotaped children in his own bathroom and uploaded videos of them. The other site users who’ve been charged weren’t identified. Two users took their own lives after search warrants were executed, authorities said.
Prosecutors also filed a civil forfeiture complaint to seize 24 cryptocurrency accounts of users who conspired to launder money and possess child pornography.
Investigators from the Internal Revenue Service and Homeland Security Investigations worked with law enforcement around the world, including the U.K.’s National Crime Agency. The NCA said it uncovered the Welcome to Video site while investigating a man now serving a 25-year jail term, and that it identified Son as the operator.
Agents from the IRS Criminal Investigation Division also claimed credit. Don Fort, chief of the division, said they determined the location of the Darknet server in South Korea, identified Son and found the physical location of the website. They also unmasked users hiding behind Bitcoin transactions, Fort said.
“Our agency’s ability to analyze the blockchain and de-anonymize Bitcoin transactions allowed for the identification of hundreds of predators around the world,” Fort said. “The scale of this crime is eye-popping and sickening.”
--With assistance from Neil Weinberg.
This article was provided by Bloomberg News.