Hushpuppi has received fresh charges as United States prosecutors submit court documents showing how he committed fraud and laundered over $400k from behind bars.
The US prosecutors presented documents before the United States District Court of California on Wed 16th March 2022 with fresh evidence indicting Hushpuppi of committing fraud and money laundering while in U.S Federal correctional facility.
The court documents stated that Hushpuppi, while in U.S Federal correctional facility, was involved in the purchase and laundering of Economic Impact Payment debit cards fraudulently obtained from stolen data of United States citizens and residents.
Economic Impact Payments are financial support offered by the US government to U.S residents according to the CARES Act. One of the ways eligible US residents receive their Economic Impact Payments is by debit cards. From the documents presented in court, it was found that hackers use data of U.S residents to file and obtain Economic Impact Payments debit cards. They sell off these EIP cards in underground marketplaces to other cyber criminals.
In the court document, the US prosecutors mentioned that inmates are allowed access to phone calls, video calls, the internet, and computers with limited usage but they are not monitored because inmates have right to their privacy.
However, between 28th Jan and 4th Mar 2022, the security officers at the US Federal correctional facility, observed more usage of the internet by the Nigerian instagram celebrity. With the knowledge that Hushpuppiwas arrested for internet related crimes, they obtained a warrant to record his activities. A dedicated system was setup for him and his activities were recorded for 7 days.
It was found that Hushpuppi was actively buying EIP debit cards from an underground cyber criminal marketplace called StimulusCard (“https://stimuluscard.com/”). While being recorded, Hushpuppi bought a total of 58 EIP debit cards with a total value of $429,800 on the site and laundered the money through one AJ.