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It sounds like he created material, not only AI but actual children then distributed it. The tools to track down the creators of CASM is only getting better.
A single legal image of any of those children posted to social media is going to allow algorithms to make the match and its routine detective work from there.
It only takes one child to talk. No amount of encryption is going to stop that.
That’s sounds mostly correct.
His relative also admitted their involvement and flipped on him which destroyed the narrow avenue he had to throw out the original evidence for the warrant.
Of course we only ever hear the cases of people who get caught. If he relative hadn’t gotten lazy he may never have been caught.
The lesson there is not to involve other people.