In August 1996, a major British newspaper, The Observer, published an article describing the Penet remailer as a major hub of child pornography, quoting a United States FBI investigator named Toby Tyler as saying that Penet was responsible for between 75% and 90% of the child pornography being distributed on the Internet.
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The second reported compromise of the Penet remailer occurred in February 1995 at the behest of the Church of Scientology.
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In September 1996, an anonymous user posted the confidential writings of the Church of Scientology through the Penet remailer.
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In September 1996, the Church of Scientology again sought information from Julf as part of its court case against a critic of the Church named Grady Ward.
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Investigations by online journalist Declan McCullagh demonstrated many errors and omissions in the Observer article.