Two women are thought to have appeared in Daisy's Destruction in which a Filipina girl is horrifically abused.
Notorious Australian pedophile Peter Scully is already in jail on charges of being the man behind the appalling video. The Australian has confessed his crimes to a news crew.
Police have been searching for the masked women who also appeared in the videos and now believe they have made a breakthrough.
Local news station ABS reports a woman has been arrested and is now in custody.
Masked woman who appeared in notorious sex abuse tape
The station says Liezyl Margallo, 23, had 16 pending warrants of arrests and is facing charges on human trafficking, anti-photo and video voyeurism, and the anti-child abuse act.
It is claimed Margallo was using different aliases to conceal her identity.
Scully himself was arrested last 2015 in Cagayan De Oro City and was charged with multiple child sex offenses, including one that involved an 18-month-old infant.
Investigators say he and Margallo were involved in recruiting young girls for cybersex activities, and in at least one case, going as far as torturing the victims to death.
Peter Scully is in prison on multiple child sex offences
The channel says the pair are said to be behind the sex and physical abuse videos, with Filipina girls as victims.
The footage is then sold on to clients around the world, and as the news channel reports, mostly to the United Kingdom and USA.
Shockingly, it is claimed that even after Scully was arrested and locked up awaiting trial, Margallo allegedly continued the illegal business, and roamed provinces looking for potential victims.
Since Scully started his operation in 2011, the NBI has already accounted for 11 victims.
On Friday, Margallo was brought back to Cagayan De Oro City where she will be detained, said ABS.
She was presented to Judge Hose Escobido of RTC Branch 37 who will hear all of her cases.
The NBI served 14 arrest warrants to the cohort but said she has still 59 other cases of child sex offenses together with Scully.
She is supposed to be committed to Cagayan de Oro City Jail Friday but due to lack of time she will be temporarily detained in NBI 10 detention cell.