Tens of Billions Won Made Via Exploitative Content-Baited Gambling Sites; Mastermind's Shocking Identity Revealed

Police have arrested and referred a syndicate to the prosecutors for creating illicit adult video websites that distributed child and youth sexual exploitation materials and illegal hidden-camera footage, using them as bait to promote about 10 gambling websites and rake in tens of billions of won.

The gang operated systematically, setting up servers abroad with a computer science PhD overseeing the operations.

The Seoul Metropolitan Police Agency's Cyber Investigation Unit announced today (August 12) that it has detained and sent two suspects, identified as A (40s) and B (36), to the prosecution on charges including violations of the Act on the Protection of Children and Youths against Digital Sex Crimes and the Act on Special Cases Concerning the Punishment, etc. of Sexual Crimes.

Police are also investigating about 10 accomplices, including the mastermind and a management chief currently staying overseas.

They are accused of establishing gambling site solutions in Pasay City and other locations in the Philippines starting in August 2019 until August 3 of this year, and operating and promoting illegal sexual exploitation distribution sites and other gambling sites based on those solutions.

According to police, they managed 2 illegal adult content sites, 18 gambling sites, and 587 general agencies.

The total betting amount managed across the gambling sites over five years reached approximately 4.7 trillion won. Police found that even after excluding withdrawal amounts from deposits, they secured illicit profits amounting to 47.6 billion won.

A police official stated, "This figure only tallies the illicit profits related to gambling site operations, excluding advertising revenue. We believe the amount of illicit gains will further increase once the mastermind is apprehended."

Unlike conventional methods where revenue is generated by attaching banner ads to gambling sites, investigations revealed that they directly ran illegal adult content sites and utilized them as a promotional tool for the gambling sites.

This method funneled users looking for sexual exploitation materials and other content into the gambling sites.

The two illegal adult content sites posted about 116,000 videos, with approximately 2.85 million registered accounts and cumulative views totaling roughly 5.3539 billion.

Looking at their specific roles, A served as the local operation chief in the Philippines, while B, who holds a PhD in computer science, was in charge of overall site development, management, maintenance, and repairs.

Investigations also revealed that B evaded police tracking by utilizing virtual servers and applying web server security technologies.

The syndicate also involved the mastermind C (54), a Philippine national management chief D (53), middle-level managers, and domestic and overseas development teams. They carried out crimes by dividing tasks into teams such as an HR team, an adult content site team, and a gambling site team.

Police launched the investigation after a women's organization filed a complaint in November of last year urging punishment for the operators of the two adult content sites.

The National Office of Investigation under the Korean National Police Agency designated the Seoul Metropolitan Police Agency's Cyber Investigation Unit as the responsible investigative office. Police identified the suspects through international cooperation with the U.S. Homeland Security Investigations (HSI) and the European Union Agency for Law Enforcement Cooperation (Europol).

A, who was residing in the Philippines, was placed on Interpol's Red Notice list and was arrested inside an airplane at Incheon International Airport on the 2nd while attempting to enter the country.

B was captured at his domestic residence on the 3rd after an arrest warrant was issued.

Police have blocked access to 10 of the illegal adult content and gambling sites operated by the group and shut them down in a non-recoverable state, with procedures ongoing for the rest.

Police plan to request Interpol Red Notices for mastermind C and management chief D, who are currently staying abroad.

They are also investigating 11 other accomplices, including gambling site agency operators, development team members, and operation team participants.

A police official stated, "We will do our utmost to confiscate criminal proceeds and eradicate illegal sites."

Meanwhile, the National Office of Investigation plans to form a pan-governmental consultative body this month with related agencies such as the Korea Communications Standards Commission (KCSC) and the Ministry of Gender Equality and Family to track and investigate illegal sites and protect victims of digital sex crimes.

(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.