A defendant in a Child Pornoraphy case, Brian James Laprath, has been offered a plea deal which will record a conviction for "money laundering" rather than downloading child pornography. Laprath bought Bitcoin off of a US based "exchange" and sent some 0.06 Bitcoin to a tor-based child pornograpy market where he then downloaded some videos. At some point US "law enforcement" perverts captured control of the site. The US Attorney's filing makes a big deal about Laprath sending "financial instruments" to South Korea, while Laprath and the USG counsel at his side appear to have simply been very happy to sign any papers at all to avoid a child pornography conviction. Nevermind in those same papers the right to resurrect the child porn charges at anytime is reserved by the US Attorney.
The papers are reproduced below not because the derp signing the papers is interesting, but to illustrate the USG's wishes and aspirations for Bitcoin:
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Case 1:19-cr-00017-DLF
Document 1
Filed 01/22/19
Page 1 of 1
UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF COLUMBIA
UNITED STATES OF AMERICA
BRIAN JAMES LAPRATH,
Defendant.
CRIMINAL NO.
VIOLATION: 18 U.S.C.
(Laundering of Monetary Instruments)
INFORMATION
The United States Attorney charges that:
Count One
On or about June 29, 2016, in the District of Columbia, the defendant, BRIAN JAMES
LAPRATH, did transport, transmit, and transfer, and attempted to transport, transmit, and transfer a
monetary instrument and funds, that is approximately .06 bitcoin, from a place in the United States to or
through a place outside the United States, that is South Korea, with the intent to promote the carrying on
of specified unlawful activity, that is, 18 U.S.C. 2252A (relating to child pornography) where the child
pornography contains a visual depiction of an actual minor engaging in sexually explicit conduct.
(Laundering of Monetary Instruments, in violation of Title 18, United States Code, Section
Respectful s bmitted,
JESSIE . L
UNIT S AT A ORN
By:
Zia Faruqui, D.C. Bar No. 494990,
Lindsay Suttenberg, D.C. Bar No. 978513,
Youii Lee, D.C. Bar No. 494990,
Assistant United States Attorneys
555 Fourth Street, N.W.
Washington, D.C. 20001
(202) 252-7117; Zia.Faruqui@usd0j.gov****** Result for Image/Page 2 ******
Case 1:19-cr-00017-DLF
David Benowitz, Esq.
Document6 Filed 01/31/19 Page 1 of 12
U.S. Department of Justice
FILED
Jessie K. Liu
United States Attorney
District of Columbia
Judiciary Center
555 Fourth St..
Washington. DC. 20530
January 28, 2019
JAN 3
Clerk, U.S. District and
Bankruptcy Courts
Re: United States v. Brian James LaPrath – 1: (I)LF)
Dear Mr. Benowitz:
This letter sets forth the full and complete plea offer to your client, Brian James LaPrath,
(hereinafter referred to as "your client" or "defendant"), from the Office of the United States
Attorney for the District of Columbia (hereinafter also referred to as "the Government" or "this
Office"). This plea offer expires on January 31, 2019. If your client accepts the terms and
conditions of this offer, please have your client execute this document in the space provided
below. Upon receipt of the executed document, this letter will become the Plea Agreement
(hereinafter referred to as "this Agreement"). The terms of the offer are as follows:
Charges and Statutory Penalties
1.
Your client agrees to plead guilty to a criminal Information, a copy of which is attached,
charging your client with the laundering of monetary instruements in violation of 18 U.S.C.
Your client understands a violation of 18 U.S.C. 1956 carries a maximum sentence of
20 years imprisonment, a fine of not more than $500,000, or a fine of twice the value of the
property involved in the transaction, pursuant to 18 U.S.C. 1956(a)(2), and a term of
supervised release of not more than three years, pursuant to 18 U.S.C. 3583(b)(2).
In addition, your client agrees to pay a special assessment of $100 per felony conviction
to the Clerk of the United States District Court for the District of Columbia. Your client also
understands that, pursuant to 18 U.S.C. 3572 and 5El .2 of the United States Sentencing
Commission, Guidelines Manual (2018) (hereinafter "Sentencing Guidelines," "Guidelines," or
"U .S.S.G."), the Court may also impose a fine that is sufficient to pay the federal government the
costs of any imprisonment, term of supervised release, and period of probation. Further, your
client understands that, if your client has two or more convictions for a crime of violence or
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felony drug offense, your client may be subject to the substantially higher penalties provided for
in the career-offender statutes and provisions of the Sentencing Guidelines.
Factual Stipulations
Your client agrees that the attached "Statement of Offense" fairly and accurately
describes your client's actions and involvement in the offense(s) to which your client is pleading
guilty. Please have your client sign and retum the Statement of Offense as a written proffer of
evidence, along with this Agreement.
3. Additional Charges
In consideration of your client's guilty plea to the above offense, your client will not be
further prosecuted criminally by this Office for the conduct set forth in the attached Statement of
Offense.
4.
Sentencing Guidelines Analysis
Your client understands that the sentence in this case will be determined by the Court,
pursuant to the factors set forth in 18 U.S.C. 3553(a), including a consideration of the
Sentencing Guidelines. Pursuant to Federal Rule of Criminal Procedure and to
assist the Court in determining the appropriate sentence, the parties agree to the following:
A. Estimated Offense Level Under the Guidelines
The parties agree that the following Sentencing Guidelines sections apply:
U.S.S.G. 2S1.1 — Laundering of Monetary Instruments
8
+0
(b)
Base Offense Level is the underlying offense level
Value of the laundered funds less than $6,500
Specific Offense Characteristics
the defendant believed that any of the laundered funds were
intended to promote the sexual exploitation ofa minor +6
conviction under 18 U.S.C. 1956
offense involved sophisticated laundering
Total
Acceptance of Responsibility
+2
18
The Govemment agrees that a 2-level reduction will be appropriate, pursuant to U.S.S.G.
3E1. l, provided that your client clearly demonstrates acceptance of responsibility, to the
satisfaction of the Government, through your client's allocution, adherence to every provision of
this Agreement, and conduct between entry of the plea and imposition of sentence. Furthermore,
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assuming your client has accepted responsibility as described in the previous sentence, the
Govemment agrees that an additional I -level reduction will be appropriate, pursuant to U.S.S.G
3El. I (b), because your client has assisted authorities by providing timely notice of your
client's intention to enter a plea of guilty, thereby pemitting the Government to avoid preparing
for trial and permitting the Court to allocate its resources efficiently.
Nothing in this Agreement limits the right of the Government to seek denial of the
adjustment for acceptance of responsibility, pursuant to U.S.S.G. 3E1.l, and/or imposition of
an adjustment for obstruction of justice, pursuant to U.S.S.G. 3Cl. l, regardless of any
agreement set forth above, should your client move to withdraw your client's guilty plea after it
is entered, or should it be determined by the Government that your client has either (a) engaged
in conduct, unknown to the Govemment at the time of the signing of this Agreement, that
constitutes obstruction of justice, or (b) engaged in additional criminal conduct after signing this
Agreement.
In accordance with the above, the applicable Guidelines Offense Level will be at least 15.
B.
Estimated Criminal History Category
Based upon the information now available to this Office, (including the representations
by the defense), your client has no criminal convictions.
Accordingly, your client is estimated to have 0 criminal history points and your client's
Criminal History Category is estimated to be I. Your client acknowledges that after the pre-
sentence investigation by the United States Probation Office, a different conclusion regarding
your client's criminal convictions and/or criminal history points may be reached and your
client's criminal history points may increase or decrease.
C. Estimated Applicable Guidelines Range
Based upon the agreed total offense level and the estimated criminal history category set
forth above, your client's estimated Sentencing Guidelines range is 18 months to 24 months
(the "Estimated Guidelines Range").
In addition, the parties agree that, pursuant to U.S.S.G. 5El .2(c)(4) and Comment 5 to
U.S.S.G. 5E1.2, the estimate maximum fine is an amount not more than $500,000, or twice the
value of the property involved in the transactions. Your client reserves the right to ask the Court
not to impose any applicable fine.
The parties agree that, solely for the purposes of calculating the applicable range under
the Sentencing Guidelines, neither a downward nor upward departure from the Estimated
Guidelines Range set forth above is warranted. Accordingly, neither party will seek any
departure or adjustment to the Estimated Guidelines Range, nor will either party suggest that the
Court consider such a departure or adjustment, except as provided above. Moreover, your client
understands and acknowledges that the Estimated Guidelines Range agreed to by the parties is
not binding on the Probation Office or the Court. Should the Court determine that a different
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guidelines range is applicable, your client will not be permitted to withdraw your client's guilty
plea on that basis, and the Government and your client will still be bound by this Agreement.
Your client understands and acknowledges that the terms of this section apply only to
conduct that occurred before the execution of this Agreement. Should your client commit any
conduct after the execution of this Agreement that would form the basis for an increase in your
client's base offense level or justify an upward departure (examples of which include, but are not
limited to, obstruction of justice, failure to appear for a court proceeding, criminal conduct while
pending sentencing, and false statements to law enforcement agents, the probation officer, or the
Court), the Govemment is free under this Agreement to seek an increase in the base offense level
based on that post-agreement conduct.
5. Agreement as to Sentencing Allocution
The parties further agree that a sentence within the Estimated Guidelines Range would
constitute a reasonable sentence in light of all of the factors set forth in 18 U.S.C. 3553(a),
should such a sentence be subject to appellate review notwithstanding the appeal waiver
provided below. Nevertheless, your client reserves the right to seek a sentence below the
Estimated Guidelines Range based upon factors to be considered in imposing a sentence
pursuant to 18 U.S.C. S 3553(a). The government agrees to recommend a sentence that is no
higher than the low end of the applicable Guidelines range.
6. Reservation of Allocution
The Government and your client reserve the right to describe fully, both orally and in
writing, to the sentencing judge, the nature and seriousness of your client's misconduct,
including any misconduct not described in the charges to which your client is pleading guilty.
The parties also reserve the right to inform the presentence report writer and the Court of any
relevant facts, to dispute any factual inaccuracies in the presentence report, and to contest any
matters not provided for in this Agreement. In the event that the Court considers any Sentencing
Guidelines adjustments, departures, or calculations different from those agreed to and/or
estimated in this Agreement, or contemplates a sentence outside the Guidelines range based upon
the general sentencing factors listed in 18 U.S.C. 3553(a), the parties reserve the right to
answer any related inquiries from the Court and to allocute for a sentence within the Guidelines
range, as ultimately determined by the Court, even if the Guidelines range ultimately determined
by the Court is different from the Estimated Guidelines Range calculated herein.
In addition, if in this Agreement the parties have agreed to recommend or refrain from
recommending to the Court a particular resolution of any sentencing issue, the parties reserve the
right to full allocution in any post-sentence litigation. The parties retain the full right of
allocution in connection with any post-sentence motion which may be filed in this matter and/or
any proceeding(s) before the Bureau of Prisons. In addition, your client acknowledges that the
Government is not obligated and does not intend to file any post-sentence downward departure
motion in this case pursuant to Rule 35(b) of the Federal Rules of Criminal Procedure.
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Court Not Bound by this Agreement or the Sentencing Guidelines
Your client understands that the sentence in this case will be imposed in accordance with
18 U.S.C. 3553(a), upon consideration ofthe Sentencing Guidelines. Your client further
understands that the sentence to be imposed is a matter solely within the discretion of the Court.
Your client acknowledges that the Court is not obligated to follow any recommendation of the
Govemment at the time of sentencing. Your client understands that neither the Government's
recommendation nor the Sentencing Guidelines are binding on the Court.
Your client acknowledges that your client's entry ofa guilty plea to the charged
offense(s) authorizes the Court to impose any sentence, up to and including the statutory
maximum sentence, which may be greater than the applicable Guidelines range. The
Government cannot, and does not, make any promise or representation as to what sentence your
client will receive. Moreover, it is understood that your client will have no right to withdraw
your client's plea of guilty should the Court impose a sentence that is outside the Guidelines
range or if the Court does not follow the Govemment's sentencing recommendation. The
Govemment and your client will be bound by this Agreement, regardless of the sentence
imposed by the Court. Any effort by your client to withdraw the guilty plea because of the
length of the sentence shall constitute a breach of this Agreement.
Conditions of Release
8.
Your client acknowledges that, although the Government will not seek a change in your
client's release conditions pending sentencing, the final decision regarding your client's bond
status or detention will be made by the Court at the time of your client's plea of guilty. The
Govemment may move to change your client's conditions of release, including requesting that
your client be detained pending sentencing, if your client engages in further criminal conduct
prior to sentencing or if the Government obtains information that it did not possess at the time of
your client's plea of guilty and that is relevant to whether your client is likely to flee or pose a
danger to any person or the community. Your client also agrees that any violation of your
client's release conditions or any misconduct by your client may result in the Government filing
an ex parte motion with the Court requesting that a bench warrant be issued for your client's
arrest and that your client be detained without bond while pending sentencing in your client's
9.
Waivers
A. Venue
Your client waives any challenge to venue in the District of Columbia.
Statute of Limitations
B.
Your client agrees that, should the conviction following your client's plea of guilty
pursuant to this Agreement be vacated for any reason, any prosecution, based on the conduct set
forth in the attached Statement of Offense, that is not time-barred by the applicable statute of
limitations on the date of the signing of this Agreement (including any counts that the
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Govemment has agreed not to prosecute or to dismiss at sentencing pursuant to this
Agreement)may be commenced or reinstated against your client, notwithstanding the expiration
of the statute of limitations between the signing of this Agreement and the commencement or
reinstatement of such prosecution. It is the intent of this Agreement to waive all defenses based
on the statute of limitations with respect to any prosecution of conduct set forth in the attached
Statement of Offense that is not time-barred on the date that this Agreement is signed.
C. Trial Rights
Your client understands that by pleading guilty in this case your client agrees to waive
certain rights afforded by the Constitution of the United States and/or by statute or rule. Your
client agrees to forego the right to any further discovery or disclosures of information not already
provided at the time of the entry of your client's guilty plea. Your client also agrees to waive,
among other rights, the right to be indicted by a Grand Jury, the right to plead not guilty, and the
right to a jury trial. If there were a jury trial, your client would have the right to be represented
by counsel, to confront and cross-examine witnesses against your client, to challenge the
admissibility of evidence offered against your client, to compel witnesses to appear for the
purpose of testifying and presenting other evidence on your client's behalf, and to choose
whether to testify. If there were a jury trial and your client chose not to testify at that trial, your
client would have the right to have the jury instructed that your client's failure to testify could
not be held against your client. Your client would further have the right to have the jury
instructed that your client is presumed innocent until proven guilty, and that the burden would be
on the United States to prove your client's guilt beyond a reasonable doubt. If your client were
found guilty after a trial, your client would have the right to appeal your client's conviction.
Your client understands that the Fifth Amendment to the Constitution of the United States
protects your client from the use of self-incriminating statements in a criminal prosecution. By
entering a plea of guilty, your client knowingly and voluntarily waives or gives up your client's
right against self-incrimination.
Your client acknowledges discussing with you Rule I I(f) of the Federal Rules of
Criminal Procedure and Rule 410 of the Federal Rules of Evidence, which ordinarily limit the
admissibility of statements made by a defendant in the course of plea discussions or plea
proceedings if a guilty plea is later withdrawn. Your client knowingly and voluntarily waives the
rights that arise under these rules in the event your client withdraws your client's guilty plea or
withdraws from this Agreement after signing it.
Your client also agrees to waive all constitutional and statutory rights to a speedy
sentence and agrees that the plea of guilty pursuant to this Agreement will be entered at a time
decided upon by the parties with the concurrence of the Court. Your client understands that the
date for sentencing will be set by the Court.
D. Appeal Rights
Your client agrees to waive the right to appeal the conviction in this case on any basis,
including but not limited to claim(s) that (l ) the statute to which your client is pleading guilty is
unconstitutional, and (2) the admitted conduct does not fall within the scope of the statute. Your
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client understands that federal law, specifically 18 U.S.C. 3742, affords defendants the right to
appeal their sentences in certain circumstances. Your client also agrees to waive the right to
appeal the sentence in this case, including but not limited to any term of imprisonment, fine,
forfeiture, award of restitution, term or condition of supervised release, authority of the Court to
set conditions of release, and the manner in which the sentence was determined, except to the
extent the Court sentences your client above the statutory maximum or guidelines range
determined by the Court. In agreeing to this waiver, your client is aware that your client's
sentence has yet to be determined by the Court. Realizing the uncertainty in estimating what
sentence the Court ultimately will impose, your client knowingly and willingly waives your
client's right to appeal the sentence, to the extent noted above, in exchange for the concessions
made by the Government in this Agreement. Notwithstanding the above agreement to waive the
right to appeal the conviction and sentence, your client retains the right to appeal on the basis of
ineffective assistance of counsel, but not to raise on appeal other issues regarding the conviction
or sentence.
E. Collateral Attack
Your client also waives any right to challenge the conviction entered or sentence imposed
under this Agreement or otherwise attempt to modify or change the sentence or the manner in
which it was determined in any collateral attack, including, but not limited to, a motion brought
under 28 U.S.C. 2255 or Federal Rule of Civil Procedure 60(b), except to the extent such a
motion is based on newly discovered evidence or on a claim that your client received ineffective
assistance of counsel. Your client reserves the right to file a motion brought under 18 U.S.C.
3582(c)(2), but agrees to waive the right to appeal the denial of such a motion.
10. Use of Self-Incriminating Information
The Govemment and your client agree, in accordance with U.S.S.G. IBI.8, that the
Govemment will be free to use against your client for any purpose at the sentencing in this case
or in any related criminal or civil proceedings, any self-incriminating information provided by
your client pursuant to this Agreement or during the course of debriefings conducted in
anticipation of this Agreement, regardless of whether those debriefings were previously covered
by an "off the record" agreement by the parties.
11. Breach Of Agreement
Your client understands and agrees that, if after entering this Agreement, your client fails
specifically to perform or to fulfill completely each and every one of your client's obligations
under this Agreement, or engages in any criminal activity prior to sentencing, your client will
have breached this Agreement. In the event of such a breach: (a) the Government will be free
from its obligations under this Agreement; (b) your client will not have the right to withdraw the
guilty plea; (c) your client will be fully subject to criminal prosecution for any other crimes,
including perjury and obstruction of justice; and (d) the Government will be free to use against
your client, directly and indirectly, in any criminal or civil proceeding, all statements made by
your client and any of the information or materials provided by your client, including such
statements, information and materials provided pursuant to this Agreement or during the course
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Document 6
Filed 01/31/19
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of any debriefings conducted in anticipation of, or after entry of, this Agreement, whether or not
the debriefings were previously characterized as "off-the-record" debriefings, and including your
client's statements made during proceedings before the Court pursuant to Rule 1 1 of the Federal
Rules of Criminal Procedure.
Your client understands and agrees that the Government shall be required to prove a
breach of this Agreement only by a preponderance of the evidence, except where such breach is
based on a violation of federal, state, or local criminal law, which the Government need prove
only by probable cause in order to establish a breach of this Agreement.
Nothing in this Agreement shall be construed to permit your client to commit perjury, to
make false statements or declarations, to obstruct justice, or to protect your client from
prosecution for any crimes not included within this Agreement or committed by your client after
the execution of this Agreement. Your client understands and agrees that the Government
reserves the right to prosecute your client for any such offenses. Your client further understands
that any perjury, false statements or declarations, or obstruction of justice relating to your client's
obligations under this Agreement shall constitute a breach of this Agreement. In the event of
such a breach, your client will not be allowed to withdraw your client's guilty plea.
12. Complete Agreement
No agreements, promises, understandings, or representations have been made by the
parties or their counsel other than those contained in writing herein, nor will any such
agreements, promises, understandings, or representations be made unless committed to writing
and signed by your client, defense counsel, and an Assistant United States Attorney for the
District of Columbia.
Your client further understands that this Agreement is binding only upon the Criminal
and Superior Court Divisions of the United States Attorney's Office for the District of Columbia.
This Agreement does not bind the Civil Division of this Office or any other United States
Attomey's Office, nor does it bind any other state, local, or federal prosecutor. It also does not
bar or compromise any civil, tax, or administrative claim pending or that may be made against
your client.
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Ifthe foregoing terms and conditions are satisfactory, your client may so indicate by
signing this Agreement and the Statement of Offense, and returning both to me no later than the
date referenced on the first page.
Sincerely yours,
Jess
Unite
By:
tates Attorney
Zia M.F u ui
Lindsay
uttenbe
Youii 1
Assist t United States Attorneys
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DEFENDANT'S ACCEPTANCE
I have read every page of this Agreement and have discussed it with my attorney, David
Benowitz. I fully understand this Agreement and agree to it without reservation. .1 do this
voluntarily and of my own free will, intending to be legally bound. No threats have been made
to me nor am I under the influence of anything that could impede my ability to understand this
Agreement fully. I am pleading guilty because I am in fact guilty of the offense(s) identified in
this Agreement.
I reaffirm that absolutely no promises, agreements, understandings, or conditions have
been made or entered into in connection with my decision to plead guilty except those set forth
in this Agreement. I am satisfied with the legal services provided by my attorney in connection
with this Agreement and matters related to it.
Brian James LaPrat
Defendant
AITORNEY'S ACKNOWLEDGMENT
I have read every page of this Agreement, reviewed this Agreement with my client, Brian
James LaPrath, and fully discussed the provisions of this Agreement with my client. These
pages accurately and completely set li»rth the entire Agreement. I concur in my client's desire to
plead guilty as set forth in this Agreement.
Date:
David Benowitz
Attorney for D endant
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UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF COLUMBIA
FILED
JAN 3
Clerk, U.S. District and
Bankruptcy Courts
UNITED STATES OF AMERICA,
BRI JAMES LAPRATH,
Defendant.
CRIMINAL NO.
STATEMENT OF OFFENSE
The patties in this case, the United States of America and the defendant, Brian Jatnes
L.aPrath, stipulate and agree that the following facts are true and accurate. These litcts do not
constitute all of the facts known to the parties concerning the charged offense; they are being
submitted to detnonstrate that sufficient facts exist that the deféndant committed the offense to
which he is pleading guilty, Laundering of Monetary Instruments, in violation of 1 956(a)(2)(A).
Staternent of Facts
A. The Website
Beginning in Septenlber 201 7, law enforcenwnt initiated a large scale investigation into a
ror based child pornography website, hereinafter reiZ•rred to as ' 'The Website."
Tor is a
computer network designed to Facilitate anonymous communication over the Internet. The Tor
network does this by routing a user's conununications through a globally distributed network of
relay computers, or proxies, rendering conventional Internet Protocol ("IP") address-based
The actual name Website" is known to law enforcement. The disclosure of the
name of "I'he Website would potentially alen its users to the fact that law enforcement action is
being taken against users of 'l'he Website, thereby provoking users to notify other users of law
entorcement action, flee, and/or destroy evidence. Accordingly, to protect the confidentiality
and integrity of the ongoing investigation involved in this matter, specific names and other
identifying factors have been replaced with generic terms and the website will be identified
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Case 1:19-cr-00017-DLF Document 5 Filed 01/31/19 Page 2 of 6
methods of identifying users ineffective. To access the Tor network, a user must install Tor
software either by downloading an add-on to the user's wcb browser or by downloading the free
"Tor browser bundle." When a Tor user accesses a website, only the IP address of the last relay
computer (the "exit node"), as opposed to the user's actual [P address, appears on the website's
IP address log. Currently, there is no practical method to trace a user's actual IP address back
through those Tor relay computers. The Tor Network also makes it possible for users to operate
websites, called "hidden services," in a manner that conceals the true IP address of the computer
hosting the website.
The Website operated as a hidden service on the Tor network until March of 2018. The
Website was used to host and distribute video files depicting child pornography that could be
downloaded by site users. In Fact, the upload page on The Website clearly states: "Do not upload
adult porn." Any user could create a frec account on The Website by creating a username and
password. Only after the user registered an account could the user browse previews of videos
available for download and post text to The Website. To download videos from the site, users
had to use "points," which were allocated to users by The Website. A registered user could earn
points from The Website in scvcral ways: (l ) uploading videos depicting the sexual exploitation
or children; (2) new users to The Website; (3) paying for a ' 'VIP" account, which lasted
tor six months, entitled a user to unlimited downloads, and was priced at 0.03 Bitcoin
(approximately $327.60 USD as of March l, 2018); or (4) paying for points incrementally.2
2
Bitcoin ("BTC") is a type of virtual currency, circulated over the internet. BTC is not
issued by any government, bank, or company, but rather is controlled through computer software
operating via a decentralized, peer-to-peer network. BTC is just one of many varieties of virtual
currency. To acquire BTC, a typical user purchases them from a BTC virtual currency exchange.
A virtual currency exchange is a business that allows customers to trade virtual currencies tor
other forms of value, such as conventional fiat money (e.g., U.S. dollars, Russian rubles, euros).
Exchanges can be brick-and-mortar businesses (exchanging traditional payment methods and
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As of February 8, 2018, The Website had over 125,000 unique videos available for
downloading. In order to prevent duplicate videos from being uploaded, The Website provided a
digital hash-value check in order for the user to compare his or her video to other videos
previously uploaded to the site. The Websitc did not allow a user to upload a video whose hash
value matched something previously uploaded to the site. According to law enforcement's
viewing of'l'he Website as of February 8, 2018, the videos stored on The Website amounted to
over seven terabytes of data. As of February 8, 2018, The Website indicated on its download
page details that its users had downloaded iilcs from The Website more than one million times.
B. Defendant's Laundering of BTC to Promote Specified Unlawful Activity
Law entorcement identified the deftndant's BTC account number, created on June 28,
2016 at a BTC exchange ("BTC Exchange"). In order to comply with due diligence obligations
imposed by the BTC Exchange, the defendant provided his social security number, home
address, phone number, driver's license number, and date of binh when opening his BTC
Exchange account. The defendant linked his BTC Exchange account to two USAA Federal
Savings bank debit cards in his name. On or about June 29, 2016, the funded his BTC
Exchange account via two transfers from his USAA Fcdcral Savings account. Within a
minutes, the defendant sent a total of .06 BTC, via two transfers, to a wallet associated with The
Website, which was in South Korea. The defundant only used his B TC Exchange account to
fund his account at The Website.
virtual currencies) or online businesses (exchanging electronically transferred money and virtual
currencies). Virtual currency exchanges doing business in the United States are regulated under
the Bank Secrecy Act and Inust collect identifying iniörmation about their customers and verity
their clients' identities. It was through this "know your customer" policy that law enforcement
were able to identify the BTC account number associated with payrnents to The
Website.
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Case 1:19-cr-00017-DLF Document 5 Filed 01/31/19 Page 4 of 6
Law enforcement's review ofthe torensic image of the electronic storage devices that
had hosted The Website revealed that the defendant downloaded at least five videos from The
Website. Two examples of these videos include the following:
C.
A video titled "Blogtv Smotri-2010-GIamour (12 Yo Super Cute Girl Masturbate)
Blackdress-Webcam.avi" with a description on The Website of "Cute WebcamGirl"
This video depicts a pre-pubescent female child wearing a black dress and exposes
her vagina. She then rubs and insert her fingers into her vagina; and
A video titled "mfl 6holland_omegle.mp4" with a description on The Website of "full
sex omegle 13 years" — This video depicts a pre-pubescent malc child and a pre-
pubescent female child engaged in sexual activities with each other. The male child
inserts his penis in the tunalc child's mouth. Thereafter, the male child engages in
vaginal intercourse with the tUnale child.
Interview of Defendant
On August 9 2018, law enforcement conducted a non-custodial interview of the
defendant. The defendant admitted to viewing child exploitation materials on the dark net via
TOR, including on The Website, and the clear net since he was 12 years old. The defendant
explained that he would use a Virtual Private Network service to anonymize accessing such sites.
The defendant, who scrvcs in the Air Force, stated that he accessed child exploitation materials
while deployed with the Air Force the satne way he does when he is at home. lhe defendant
stated the last time he saw child exploitation materials was hours betöre thc interview with law
enforcement.
The defendant stated that he never retained any files; rather, he would download the
videos and "shred it" afterwards, which he stated meant to securely erase the files. The
defendant further explained that he never saved any such files for more than a few hours.
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Case 1:19-cr-00017-DLF Document 5 Filed 01/31/19 Page 5 of 6
The defendant stated he sought counseling approxitnately two years ago from his pastor
ancl from a trained medical protussional. The defendant explainecl that he reached out
assistance because he knew that it was wrong to view child pornography.
Respectfully submitted,
JESSIE K. LIU
UNITED STN
Zia Faruq
ATT RNEY
Lindsay utt nberg
Youli L e
Assistan United States Attorneys
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Case 1:19-cr-00017-DLF Document 5 Filed 01/31/19 Page 6 of 6
DEFENDANT'S LEI)GNIEXT
I have read every page of this Statetnent of the and have discussed it mth tuy
attorney. I fillly understand this Statetnent of the Offense. I agree and acknowledge by my
signature that this Statement of the Offense is trtle and accurate. I do this voluntarily and of my
own free will. No threats have been made to me nor am I under the influence of anything that
could innpede my ability to understand this Statement of the Offense frilly.
Date: i 3)
Brian Jatnes oaPrath
Defendant
ATTORNEY'S ACKNOWLEDGMENT
I have read every page of this Statetnent of the OfTense, and have reviewed it with Iny
client fully. I concur in my client's desire to adopt this Statenoent of the Ofiénse as true and
accurate.
l/ 3' 1 19
Date:
David Benoxv
Counsel