A Bellambi man stands accused of possessing nearly 1500 images of child abuse - but says the flash drive they were found on isn't his.
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John Lyons has been released on bail after appearing in Wollongong Local Court via video link on Friday.
Lyons, 39, is charged with one count of possessing child abuse material.
In a search of Lyons' Bellambi home on Wednesday morning, police discovered a flash drive containing 1453 images of child abuse on top of a tallboy in a bedroom.
Police documents tendered to the court said Lyons told police "that's not mine" when the flash drive was found.
However, he allegedly admitted ownership of several other electronic devices seized by police.
Officers raided Lyons' home after the Australian Federal Police received reports from the National Center for Missing and Exploited Children last November in relation to child abuse material on Instagram and Facebook.
Police allegedly found Lyons was the owner of both accounts.
When police asked about his social media accounts on Wednesday, Lyons said: "I got kicked off them".
Lyons was arrested in Figtree on Thursday.
In a police interview, Lyons declined to comment on the social media accounts and the allegations, but again denied ownership of the flash drive.
On Friday Legal Aid solicitor Stewart Holt told the court Lyons had strong community ties, stable accommodation and employment.
Mr Holt said there would be a delay before the matter could be finalised and it would be "some months at least" before the allegations could be tested in court.
He reiterated that Lyons said he did not own the flash drive on which the child abuse images were found and had instructed him that someone else had stayed in the house.
Magistrate Robert Walker released Lyons on bail to reside at a Bellambi address.
Lyons has also been ordered to not associate with children under the age of 18, drink or take drugs.
He will appear in court later this month.
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