KB News Desk
Computer science Ph.D. helped run sites tied to 4.7 trillion won in bets and at least 47.6 billion won in illicit profits
South Korean police said Wednesday they have uncovered an illegal gambling operation that used websites distributing child sexual exploitation material to lure users to online betting sites, generating an estimated 47.6 billion won ($34 million) in illicit profits over five years.
The Seoul Metropolitan Police Agency said two men, aged 40 and 36, have been detained and referred to prosecutors on charges including violations of laws protecting minors from sexual exploitation and banning illegal sexual content.
Police are also investigating more than 10 alleged accomplices, including the suspected ringleader and managers based overseas.
The group allegedly operated from locations including Pasay City in the Philippines from August 2019 through Aug. 3 this year, building gambling-site software and using it to run and promote a network of illegal pornography and betting websites.
According to police, the organization managed two illegal pornography sites, 18 gambling sites and 587 gambling distributors.
The betting sites handled about 4.7 trillion won in wagers over five years. Police estimated the group earned at least 47.6 billion won in illicit profits after excluding money returned to gamblers.
Authorities said the final amount could increase once the suspected ringleader is arrested because the current estimate does not include advertising revenue.
Unlike operators that simply place gambling advertisements on third-party pornography sites, the group allegedly ran the illegal sexual-content sites itself. It then used them as a funnel to direct visitors to its gambling platforms.
The two sites contained more than 116,000 videos, had about 2.85 million registered accounts and recorded more than 5.35 billion cumulative views, police said.
One of the detained suspects allegedly managed operations in the Philippines. The other, who holds a doctorate in computer science, was responsible for developing, managing and maintaining the websites.
Police said the computer science specialist used virtual servers and web-security techniques to make the network harder to trace.
Investigators believe the organization was divided into specialized teams handling personnel, illegal sexual content, gambling operations and software development.
Police began investigating after a women’s rights group filed a complaint in November seeking punishment of the operators of the two illegal pornography sites.
The National Office of Investigation designated the Seoul police cybercrime unit to lead the case. Investigators worked with the US Homeland Security Investigations and Europol to identify suspects.
One suspect, who had been living in the Philippines and was subject to an Interpol Red Notice, was arrested aboard an aircraft at Incheon Airport on Aug. 2 while attempting to enter Korea. The other was arrested at his home the following day.
Police said they have blocked access to and permanently shut down 10 of the illegal pornography and gambling sites and are taking action against the remaining sites.
Authorities plan to seek Interpol Red Notices for the suspected 54-year-old ringleader and a 53-year-old Filipino manager. Eleven other alleged distributors, developers and operators remain under investigation.
