Blockchain intelligence helped crack one of the world’s largest child sexual abuse material networks, leading to the arrest of its alleged administrator in Brazil and the seizure of a dark web platform that served more than 350,000 users worldwide.
A joint operation by U.S., German, and Brazilian authorities relied on cryptocurrency tracking to identify a Peruvian national who allegedly used a mixer and multiple wallets to hide the traces of his funds, according to a report by the TRM Institute.
According to the report, Brazilian Federal Police arrested a Peruvian national in September following a crypto-tracing operation led by the TRM Institute and discovered child sexual abuse material during the search.
The seized platform had more than 350,000 users and offered 21,000 illicit videos totaling approximately 660 hours and nearly 900,000 views, with memberships starting at just $10.
The alleged administrator allegedly ran the dark web platforms Videos Yad and Videos Sebick, which were hosted on servers in Germany, but were later shut down by authorities and replaced with an official seizure notice from the Bavarian Criminal Police.
The suspects allegedly used Mixer and operated multiple sites using false identities. walleta third-party account to hide payments, but TRM Labs analysis found they were shared blockchain Infrastructure that connects old and new platforms.
Investigators working with Brazilian police traced payments from customers through intermediaries to final cash withdrawals on Brazilian cryptocurrency exchanges, revealing the infrastructure shared across the sites.
This digital paper trail proved to be crucial, as the network had been operating undetected for years.
“The need for this on-chain information to uncover the identity of the suspected administrator highlights the investigative value of TRM’s financial information database related to CSAM,” the report said.
“This incident shows how blockchain intelligence can play a decisive role in protecting the most vulnerable,” said Ari Redboard, vice president and global head of policy and government at TRM Labs. decryption. “By tracing that money, investigators were able to connect fragmented digital identities, expose a transnational criminal network, and bring a long-running operation to a close.”
alliance against exploitation
Authorities and blockchain companies are stepping up joint efforts to dismantle cryptocurrency-based child exploitation networks.
In June, Elliptic joined the Internet Watch Foundation to receive live alerts on cryptocurrency transactions related to child abuse content, and IWF’s 2024 report shows that cryptocurrencies are the top payment method on such sites, appearing in 60.87% of URLs offering payment options.
“Public-private collaboration remains critical in combating online child exploitation,” Redboard said. “These cases transcend borders, platforms, and currencies, and it is only through partnerships like this that we can have a meaningful impact.”
Crackdown on crypto crime
The operation is part of a global effort to hold crypto intermediaries accountable for enabling illicit finance, from child exploitation to ransomware.
Last month, Canada’s FINTRAC imposed a record $126 million fine on Cryptomas for failing to report thousands of suspicious transactions related to child exploitation, ransomware and sanctions evasion.
Europol recently seized $330,000 in virtual currency and arrested seven people linked to a Latvian cybercrime network that used 1,200 SIM box devices for crimes such as distributing child abuse material.
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