Leaders of global online extortion and exploitation group 764 charged

By AJ Vicens

DETROIT (Reuters) – Two men alleged to have played key roles in the virulent online exploitation network known as 764 have been arrested and charged, and face potential life sentences in prison, the Department of Justice said.

Leonidas Varagiannis, 21, and Prasan Nepal, 20, allegedly led a core subgroup of 764 known as “764 Inferno,” which targeted vulnerable people, including children, with tactics designed to induce self-harm, the DOJ said in a statement on Tuesday.

The pair were also involved in making and distributing child sexual abuse material, which was combined with other “gore and violent material to create digital ‘Lorebooks,'” according to the DOJ, which were then traded among group members and treated as currency to recruit new members or maintain status within the network.

Nepal, known as “Trippy,” was arrested on April 22 in North Carolina. Varagiannis, known as “War,” is a U.S. citizen living in Greece. He was arrested there on Monday. The U.S. Attorney’s Office in Washington, D.C., did not immediately respond to a request for comment about Varagiannis’ extradition.

A federal public defender for Nepal did not immediately respond to a request for comment. An attorney for Varagiannis could not be located. 

The two men allegedly conspired with and directed at least half a dozen other people involved with the malicious activity, according to an FBI affidavit.

The FBI warned of a sharp increase in 764 activity in a March 6 public service announcement.

The DOJ refers to 764 as a “nihilistic violent extremist” network. 764 is one of a number of online-based cybercrime networks within a broader network known as “the Com,” which includes violent and cybercriminal activity. 

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 said. “Arrests really are a winning strategy. Love to see it.”

(Editing by Rod Nickel)