Are you looking for the owners of NXTGN.org and how they make $200.000 yearly? Then you've come to the right place.

It's been known for a long time that pchl1990 a.k.a Sleeper and Spiziuz has been the owners behind NXTGN - they was kind enough to brag about this every day at the now defunct Piratgruppen board. When their real names got exposed in comments on a article @ ComOn and ComputerWorld, they "resigned" from NXTGN in a statement written on their news feed, stating that they would focus on other parts of their lifes and they were gone. At least their nicknames was.

But did they in fact leave? You're guessed right, they didn't. They just couldn't say goodbye to the high income their site was generating, it was simply too much money. They actually went so far to make it their primary income and it's currently what the owners are making a living of

Wait... what? Two persons making a living based on the income on a BitTorrent tracker? That can't be possible...

But it is. And here's how it's done.

In the beginning, they merely used a PayPal account to accept donations - pretty simple. This account was in the name of one of the staffers back then, but when PayPal cracked down on torrent sites in particular, they lost their account and ability to receive money this way. That was bad news, as they needed another way to receive payments in a hurry.

So what does a guy who thinks he's so clever do, that want's to make a living of his illegal torrent site? He makes a proforma company, that will enable him to obtain a merchant account and process VISA/Mastercard/Dankort (some special card in Denmark) and provide him with a legal salary, that he pays his taxes on and makes a living on. And it's not just any company he set's up, it's a LTD, that in Denmark requires a minimum capital of 80.000 DKK, almost €11.000 EURO! (Today it's 50.000 DKK/~€7000) to open. That is a whole lot of money, to put up as capital, in order to own a proforma company... Unless you know you can make some serious cash on it.

But can any of this be proven? Absolutely! First of all, the internet never forgets. Anyone who wants to confirm that pchl1990 and Spizuz was operating NXTGN, can simply check the Internet Archives for piratgruppen.org. But this is so known by most people in the danish torrent community, that I'm not gonna spend time on this part.

The names revealed in the comments @ ComOn/CW was Peter Loebner and Allan Hansen. Just to confirm that these are true, both Peter and Allan has been so kind to keep their old Arto account alive: http://www.artoprofile.com/section/user/profile/presentation/?ID=3153217 [1] (Peter/pchl1990) and http://www.artoprofile.com/section/user/profile/presentation/?PageID=740967 [2] (Spiziuz) - it clearly shows their real names along with their nicknames. I have included screenshots of both profiles in the torrent, just in case they manage to take the profiles down.

Alright, so we got the previous owners identities. But what does that proof in regards to the current situation? We'll get to that.

As mentioned, they set up a company in order to accept payments. But you can't just go to a card processor and say 'hey, i want to process payments for my illegal torrent site' and then you're good to go - it doesn't work that way.

To get around this, they set up a fake hosting company (the LTD mentioned earlier), named Scansec.net. To confim it's Peter and Allan behind the company, here's a link to the company registry in Denmark that shows the director is Peter himself: http://www.proff.dk/firma/scansec.net-aps/aabenraa/anden-it-servicevirksomhed/15445050-1/ [4]. Allans name isn't included here, but i will show you later that Peter and Allan is still working together.

And to confirm it's just a fake site with no activity, take a look at pages like this:

http://www.scansec.net/?/cart/ - 3 boxes filled with Lorem Ipsum?

http://www.scansec.net/index.php?/page/backup-details/ - Want to order their products? Sorry, the order buttons just refreshes the page

http://www.scansec.net/index.php?/news/ - No news for more than a 1½ years?

http://www.scansec.net/index.php?/page/our-client-storiesPWCb/ - Two client stories that has been there since they opened the site?

http://www.scansec.net/index.php?/tickets/new/ - Ticket system that only has a sales department? No support, billing, abuse, etc?

http://www.scansec.net/index.php?/knowledgebase/ - Empty knowledge base? After 2 years in business, and you haven't had the need to write just one single guide to your customers, to avoid unnessecary support requests?

The page just screams 'IM FAKE, DONT PURCHASE ANYTHING HERE'

But how can a hosting company take payments from a torrent site? That's actually easy, you can just redirect the users to the payment pages of the hosting company and have them complete the payment there. However that's a bit obvious and insecure, as you will reveal your company information in that process, which eventually will lead back to you.

To circumvent this, they set up yet another fake site, called 'danskbitcoin.net' (Danish Bitcoin), where users can purchases Bitcoins. Further, on this site they offer the option for any merchant to prefill values such as amount and receiving Bitcoin address for the purchase, meaning that sites like NXTGN, can redirect their user to danskbitcoin.net, with prefilled amount and address that will receive the Bitcoins, and then the users simply proceeds to complete the payment with their creditcard and NXTGN will receive the money.

But why include scansec.net in all this? Because it wasn't possible to obtain a card processing deal, for a site that sells Bitcoins, so they are using the processing agreement they obtained for scansec.net, to sell Bitcoins on danskbitcoin.net - they even kindly provide a link from scansec.net to danskbitcoin.net, so the link between the two sites is obvious.

Now let's find some proof that Allan is still connected with Sleeper. They actually created a new company together, called ITuno. And they proudly show themself off on their team page, so people, here i present in pictures the "previous" owners of NXTGN.org:

http://ituno.dk/team/ [5]

Alright okay, so what we know:

1) Peter and Allan was the owners of NXTGN officially, until they resigned

2) Peter then created the fake Scansec.net company

3) The fake company begins "selling" Bitcoins

4) NXTGN starts using this fake company to accept their payments

5) Peter and Allan work together in another company

It doesn't require any math skills, to know it's still Peter and Allan behind the scenes, having the above information at hand.

So with that in mind, let's proceed to the money part. I mentioned they made a serious load of cash? Yes, that's right.

If you revisit the link i provided earlier (http://www.proff.dk/firma/scansec.net-aps/aabenraa/anden-it-servicevirksomhed/15445050-1/) [3],

you will be able to see their annual income of year 2013 is a staggering 1.235.000 MILLION DANISH KRONER! That is $211.000 US DOLLARS! WHAT THE FUCK?!

I love torrent sites and i love the community around it, but having two guys pulling something like $100.000 a year, for pirating other peoples work is simply disgusting and i'm not gonna stand by to watch that.

I'm not gonna judge the users of NXTGN for supporting them, I'm sure they do it with good intentions to keep the site alive as a community, but i'm pretty convinced people don't want to pay money directly to the owners pockets.

At least now you're all informed and can make your own decisions with proper facts at hand.

/t-B0ne

[1] Arto profile Peter Loebner aka pchl1990 aka Sleeper.png - http://bayimg.com/mAaFDaagp

[2] Arto profile Allan Hansen aka Spiziuz.png - http://bayimg.com/maaFFAAGp

[3] Proff screenshot of company details and annual turnover.png - http://bayimg.com/maafGAAGP

[4] Proff screenshot of company details and Peter as directory.png - http://bayimg.com/MAAfhAAGp