A 53-year old Grahamstown man is expected to appear in the city's magistrates court again on Wednesday on charges of possession, manufacture and distribution of child pornography.
The man was arrested earlier in March as a part of an international probe, involving the FBI, into a child pornography ring with its roots in South Africa.
He appeared in court on Tuesday where the matter was postponed for further investigation.
Officials say as many as 600 American children, aged between eight and 13, had allegedly been tricked into engaging in sexually explicit activity on web cameras through the South African based website.
The man who is the owner of guesthouses in Grahamstown and Port Alfred, is currently out on bail of R40 000.