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Investigators pieced together the identity of the self-described 'Proud Ped' when his chat partner made references to 'Ben' and his ACA connections.Mc Cormack, 43, pleaded guilty to two charges of transmitting, producing or publishing child pornography material via a carriage service on Tuesday.Like using legitimate, mainstream chat sites to broadcast the abuse, payment using virtual currencies such as Bitcoin also makes the criminals harder to trace than if they were taking credit card payments.
"These persons offer homeless children or children from their own family for the sexual abuse by individuals, live in front of a camera, in the European Union or developing countries, for financial gain," the report said.
Filippino police recently busted a paedophile ring that streamed live sex involving children as young as six, the report said.
In May, the West Australian newspaper reported that arrest led police to phone and website records, as well as other Australians, including school teachers and Mc Cormack.
Outside court on Tuesday, Mr Macedone said Mc Cormack's Skype conversations contained only 'fantasy talk'.
"The research shows that the live streaming of abuse for payment is no longer an emerging trend but an established reality," the report said.