A well-known Instagram personality, Hushpuppi committes fraud and launder over 400k dollars while detained. He has been charged once more after US officials provided court documents revealing how he committed the fraud.
Hushpuppi committes fraud and launder over 400k dollars
On March 16, 2022, US prosecutors presented new evidence to the United States District Court for the Central District of California accusing HushPuppi of fraud and money laundering in a federal prison in the United States.
While incarcerated in a federal prison in the United States, Hushpuppi engaged in the purchase and laundering of Economic Impact Payment debit cards obtained fraudulently from stolen data of US citizens and residents, according to court filings.
Under the CARES Act, the US government provides Economic Impact Payments to US citizens. One of the ways qualified US people receive their Economic Impact Payments is using debit cards.
According to court records, hackers utilize data from US people to file for and obtain Economic Impact Payments debit cards. They sell these EIP cards to other cyber criminals on underground markets.
In a court filing, US prosecutors stated that inmates have restricted access to phone calls, video calls, the internet, and computers, but that they are not monitored since inmates have a right to privacy. Hushpuppi, like the other prisoners, was granted access.
However, security authorities at a US Federal prison facility detected Hushpuppi using the internet more frequently between the 28th of January and the 4th of March 2022.
They received an order to monitor Hushpuppi’s activities after learning that he had been arrested for internet-related crimes. For him, a special system was set up, and his activities were logged for seven days.
Hushpuppi was discovered to be buying EIP debit cards from StimulusCard , an underground cyber criminal marketplace.
Hushpuppi purchased 58 EIP debit cards with a total value of $429,800 on the site while being recorded and laundered the money through one AJ.