US national charged with operating global child exploitation enterprise

USA Today

01-05-2025

US national charged with operating global child exploitation enterprise
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Two men have been arrested and charged for allegedly playing key roles in operating "one of the most heinous online child exploitation enterprises" federal authorities have ever encountered, the U.S. Attorney's Office said.
Leonidas Varagiannis, 21, and Prasan Nepal, 20, are accused of leading "764 Inferno," a core subgroup of a U.S.-based criminal online network known as "764," according to the U.S. Attorney's Office for the District of Columbia. The group targeted vulnerable people, specifically children, online and used violent tactics that were designed to induce self-harm, a criminal complaint states.
"764 is a network of nihilistic violent extremists who engage in criminal conduct in the United States and abroad, seeking to destroy civilized society through the corruption and exploitation of vulnerable populations, which often include minors," the U.S. Attorney's Office said in a news release April 30. "The 764 network's accelerationist goals include social unrest and the downfall of the current world order, including the United States Government."
Varagiannis, who is known online as "War," is a U.S. citizen residing in Greece and was arrested in the northern Greek city of Thessaloniki on April 28, prosecutors said. Nepal, known as 'Trippy,' was arrested on April 22 in North Carolina.
The two men allegedly conspired with and directed at least half a dozen other members or prospective members of "764 Inferno" to commit malicious crimes, according to the criminal complaint. They face a maximum penalty of life in prison if convicted, prosecutors said.
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Federal authorities have referred to "764" as a "nihilistic violent extremist" network that operates within the United States and across the world. The group is one of several online-based cybercrime networks within a broader network known as 'the Com,' which includes violent and cybercriminal activity, according to Reuters and CyberScoop.
In March, the Federal Bureau of Investigation warned in a public service announcement that there has been a "sharp increase" of "764" activity and other related violent online networks.
"These networks methodically target and exploit minors and other vulnerable individuals, and it is imperative the public be made aware of the risk and the warning signs exhibited by victims," the FBI said. "These networks exist on publicly available online platforms, such as social media sites, gaming platforms, and mobile applications commonly used by young people."
According to the agency, these networks threaten and manipulate victims into producing and sharing acts of self-harm, animal cruelty, sexually explicit acts, or suicide. Footage of these acts is then shared among members of these networks to extort victims and control them.
'Facilitated the grooming, manipulation, and extortion of minors'
The criminal complaint alleged that members of "764 Inferno" operated through encrypted messaging applications, in which they made and distributed child sexual abuse material. Prosecutors said the group's activities occurred from late 2020 to early 2025, during which "core leadership roles" were assigned to both Veragiannis and Nepal.
The material was used with "other gore and violent material to create digital 'Lorebooks,'" according to prosecutors. The group's "Lorebooks" were used as digital currency within "764," which members traded, archived in encrypted "vaults," and used to recruit new members or maintain status within the network, prosecutors said.
The complaint detailed how Veragiannis and Nepal provided step-by-step instructions for other members on how to groom and extort a potential victim. The two also set production expectations, which were based on the quality and notoriety of content for new recruits, the complaint alleged.
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According to the complaint, Veragiannis and Nepal exploited at least eight victims under the age of 18 across multiple jurisdictions, and some content was traced to children as young as 13. The complaint also alleged that both Veragiannis and Nepal threatened and coerced their victims to engage in self-mutilation, online and in-person sexual acts, harm to animals, sexual exploitation of siblings and others, acts and threats of violence, and suicide.
"The defendants facilitated the grooming, manipulation, and extortion of minors," the U.S. Attorney's Office said. "Veragiannis and Nepal allegedly ordered their victims to commit acts of self-harm and engaged in psychological torment and extreme violence against minors .. This content includes 'cut signs' and 'blood signs' through which young girls would cut symbols into their bodies."
Allison Nixon, chief research officer for cybersecurity company Unit 221B, told Reuters that Varagiannis and Nepal are "major actors," and that their arrests are a positive development.
"Com-related crime waves are driven by a small number of highly prolific actors,' Nixon added. 'Arrests really are a winning strategy."
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Contributing: Reuters