Crypto: Strike Force Angle traces the payments
Crypto is at the heart of the investigation. Australia is already closely monitoring the criminal use of digital assets: crypto scams caused more than $122 million in losses there over a 12-month period.
This time, the case concerns an entirely different type of crime.
The New South Wales Police Cybercrime Squad says Strike Force Angle is seeking to determine “the extent and means” by which offenders use cryptocurrencies to distribute, purchase or produce child sexual abuse material online. Authorities have not publicly detailed which cryptocurrencies were used or the amounts involved in the transactions.
A search was carried out on Wednesday morning at a property in North Albury with support from the Raptor Squad. Electronic devices, suspected prohibited substances and various items were seized for forensic analysis.
Jamie Bell, 29, was subsequently arrested and taken to Albury Police Station.
Exchanges with AI models discovered
The accusations go beyond the alleged possession of files.
The man is facing, among other charges, two counts of producing child sexual abuse material, possessing such material, allegedly producing content involving animals, possessing a sexually explicit object depicting a child, possessing a prohibited drug and breaching his bail conditions. He is presumed innocent unless and until a court finds him guilty.
The AI aspect emerged during the hearing on his bail application. According to ABC, prosecutors said investigators had discovered conversation threads with artificial intelligence models on the devices examined. Judge Miranda Moody also referred to alleged production using “AI and other functionalities.”
The case comes as the use of AI in cybercrime is advancing rapidly. Generative tools can automate or simplify certain tasks that were previously more complex, forcing investigators to adapt their methods.
However, the Australian justice system has not specified which models may have been used or exactly how artificial intelligence allegedly played a role in the offences.
Crypto and AI become two investigative trails
The case also highlights a reality often overlooked when it comes to cryptocurrencies: digital payment does not necessarily mean complete anonymity.
Transactions recorded on a public blockchain can leave exploitable traces. An address does not directly display a name, but investigators can sometimes link it to an identity through exchanges, KYC procedures, seized devices or other elements of an investigation.
Strike Force Angle appears to be specifically seeking to understand how these financial channels are used to distribute illegal content.
Artificial intelligence now adds a second layer. Conversations recorded with an assistant, generated files, metadata or histories found on a device can also become evidence examined by investigators. The criminal use of AI is no longer limited to financial fraud: Bref Crypto recently showed how content related to AI assistants could also be used to distribute malware targeting crypto wallets.
In the North Albury case, there is still no public basis for stating exactly what share of the alleged material may have been created by AI. It is now up to the analysis of the seized devices and the legal proceedings to establish that.
Jamie Bell’s bail application was refused. He is due to appear again before Albury Local Court in November.
In brief
- A 29-year-old man was arrested in North Albury on September 23.
- Strike Force Angle is investigating the use of crypto to purchase, distribute or produce child sexual abuse material.
- Electronic devices were seized for analysis.
- Exchanges with AI models were allegedly discovered.
- The court referred to alleged production using AI and other digital tools.
- The suspect was remanded in custody and remains presumed innocent.
