The teenager was 15 when he was arrested on suspicion of posting white supremacist material on both a website he had set up himself and on YouTube.
Crown Prosecution Service lawyer Viv Goddard said the 17-year-old insisted that those who wanted to view his site had to sign up to several statements before they were allowed access.
These included swearing and that they were white race, were not Jewish religion, believed racial segregation and had never engaged in an inter-racial relationship.
The website included footage of a racist attack.
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