South Texas man gets prison after using cryptocurrency to access child pornography

A man from Edcouch, Texas, was sentenced to federal prison after using cryptocurrency to purchase links to child pornography that included bestiality and sadistic and masochistic content, the U.S. Department of Justice said in a news release last week.

Servando Diaz, 32, pleaded guilty March 19 and was sentenced to 12 years for receiving child pornography, U.S. Attorney for the Southern District of Texas Alamdar S. Hamdani said.

At the hearing, U.S. District Judge Drew Tipton heard that Diaz admitted downloading child pornography to numerus personal devices for his own use online and offline. The court also heard that his collection of child pornography included a wide range of content. Diaz also was ordered to pay a $5,000 special assessment and will serve 10 years on supervised release after he is released from prison.

He will have to comply with numerous requirements restricting his access to children and the internet. He also was ordered to register as a sex offender.

From approximately Nov. 30, 2022, to approximately Dec. 7, 2022, Diaz downloaded child pornography from links he purchased using cryptocurrency, the news release said.

Law enforcement is investigating a commercial sexual exploitation ring in which child pornography is sold and paid for through cryptocurrency. In the scheme, links are provided to the purchaser via MEGA, a file hosting service, officials said.

Authorities identified a person who purchased child pornography directly from the commercial sexual exploitation ring. A database check confirmed the deposit address in Edcouch belonged to Diaz, authorities said.

On Aug. 15, 2023, Diaz agreed to an interview with law enforcement and admitted viewing, purchasing and downloading child pornography for approximately 10 years, the news release said, adding that Diaz used platforms including Telegram and MEGA to purchase the links with cryptocurrency.

He also paid approximately $50-$150 via PayPal to gain access to a private group known to distribute child pornography on either Discord or Telegram, the news release said.

Law enforcement conducted a forensic search on his digital devices that found 360 videos and 178 image files depicting child pornography, including prepubescent children engaging in sexually explicit conduct, the news release said.

Diaz will remain in custody until he is transferred later to a U.S. Bureau of Prisons facility.

The FBI conducted the investigation.

Assistant U.S. Attorney Alexa D. Parcell prosecuted the case, which was brought as part of Project Safe Childhood, a nationwide initiative the Department of Justice launched in May 2006 to fight child sexual exploitation and abuse.

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