Auckland man using hacked data had bestiality and child abuse images, caught in FBI-led operation

Di Shang exploited the data stolen from hacking victims and was found with child exploitation material. Graphic / NZME

A 29-year-old who misused money from his parents to buy stolen data was caught with child abuse and bestiality material.

Auckland man Di Shang was caught in a global investigation after using cryptocurrency to pay about $2000 for compromised login details belonging to people in New Zealand and overseas.

Shang, now aged 32, was sentenced at the Auckland District Court today.

During the 2021 Delta lockdown, he accessed the Genesis Market platform.

Multilateral police investigation Operation Zinger, also known as Operation Cookie Monster, later dismantled that marketplace.

A police summary of facts said goods “packaged” for sale on Genesis Market varied in price.

“Accounts with legitimate credentials for platforms like Amazon, Netflix, Gmail and bank accounts [were] more valuable,” the summary of facts said.

Police said Shang used cryptocurrency between October 2021 and May 2022 to buy details, including compromised usernames and passwords.

In February 2022, he logged into one victim’s ANZ bank account, buying a video game from Mighty Ape worth $444.95.

After a tip-off from the FBI, New Zealand police searched his central Auckland home in April 2023.

Shang told police he did not know using Genesis Market was “a big deal”.

He faced two charges of accessing a computer system for dishonest purposes, carrying a maximum seven-year jail term.

He also faced charges of possessing objectionable publications after police found images a judge described as disgusting and exploitative.

One video involved a girl younger than 3 years old. Another involved a dog.

More than 1000 of the most seriously objectionable images, known as Category A, were found on one device.

The court heard Shang used funds from his mum and dad to pay for the Genesis Market data.

His parents, visiting from China, were in court today.

“They know all about what’s happened and they support their son,” defence counsel Marie Dyhrberg said.

Home detention argument

Dyhrberg said Shang had undergone rehabilitation and two professionals assessed his reoffending chances as low.

She said Zhang now carried in his pocket a guideline on how to control his urges and tried to embrace a healthy lifestyle.

“He runs about 15km a day. He eats healthy,” Dyhrberg added. “He has come a long way.”

Police prosecutor Yara Alrubayee said a 15% discount for good character was too high and 5% was more appropriate.

Alrubayee said there was nothing exceptional about Shang’s background meriting a discount.

She queried the suitability of home detention if offending happened during Covid lockdowns, which resembled home detention.

“Are we just placing him in an environment where he can reoffend in the same manner?”

The court also heard the ANZ bank account holder whose identity was stolen had requested $444.95 reparation.

Both parties agreed to that and that a laptop of Shang’s found with offensive material be destroyed.

“How are you destroying a laptop? Are you putting a nail through it?” Judge Claire Ryan asked.

“I believe they just drill through it,” the prosecutor replied.

‘Sadistic’ content

Judge Ryan said it was concerning Shang had more than 280 hours of recordings, one alone being 20 hours, and some material being sadistic.

“This man downloaded a substantial amount of material ... bestiality, abuse of young people and abuse of indeterminate age.”

Judge Ryan said people who stole the identity of others and downloaded “disgusting images” had serious problems.

The judge said suggestions Shang “accidentally fell into the dark web” were ridiculous.

She said people who distributed child abuse material revictimised those children.

Judge Ryan said some other websites Shang visited had since been shut down, but tackling child sexual exploitation was an ongoing struggle.

Photo argument

The defence asked for photos taken of Shang not to be immediately used.

The Herald argued it was in the interest of deterrence and open justice to run his photo.

Judge Ryan agreed and said since the case involved identity theft, potential lenders and others had the right to know what Shang looked like.

But the judge said by law she had to allow Shang to appeal this issue – and he now had 20 working days to do so.

The court heard suggestions lockdown-era loneliness may have been to blame for the offending.

Judge Ryan said Shang more likely failed to use tools such as Zoom or healthy coping mechanisms, instead retreating and failing “to connect to real-life individuals”.

Shang received a discount of 10% for rehabilitation efforts, 25% or 15 months for guilty pleas and 15% for prior good character.

He also earned credit for being on bail since 2023 with no bail breaches.

The judge said 12 months' home detention followed by another year of post-detention conditions was the most appropriate sentence for Shang.

“If he puts one toenail out of line, he will come back before me.”

Shang can also not associate with any person under 16 without a probation-approved chaperone.

The US Department of Justice previously said Genesis Market victim credentials were provided to the Have I Been Pwned website, where people can check if their email address was found in a known data breach.

Operation Cookie Monster involved law enforcement agencies from 18 countries.