'So someone has leaked it. Do you know who it was?' radio host Jason 'Bodge' Bodger asked the barbershop owner.
'I've got a rough idea, but I'm not going to comment on that,' Steve replied.
However, radio host Krysti Dixon wasn’t about to let the subject drop.
'Were you close to them in the experiment?' she asked.
'Yes,' Steve said, choosing not to elaborate further.
The shocking pictures and chat details were initially obtained by The Daily Telegraph, who reached out to the reality TV star for comment.
“I have no comment to make on that, no comment,” Steve told the publication.
“It was just a bit of fun with some friends I think … with the rest of the group I think.”
The publication reports that hairdresser Steve sent the 'Hitler' image in the group chat titled “The Kids” with the question, “Who am I?”.
Steve was then rumbled by another pal who leaked details of a separate group with MAFS contestants titled “Fruitloops & Misfits”, where he sent an image where he uses his fingers to pull his eyelids down to appear “like an Asian Mishel”.
Mishel, 48, is "married" to Steve on the controversial dating show.
Speaking on Steve's behalf, Channel Nine issued an apology via The Daily Telegraph.
“This is a private message that was never intended to be made public but I can see that it is culturally insensitive and I regret it,” he said in the statement.
“I am deeply sorry if I have offended anyone.”