Inmate Trader: How Phillip John Smith Crafted a Crypto Side-Hustle Behind Bars

Article Summary:

Convicted murderer Phillip John Smith, infamous for his 2014 prison escape, admitted to secretly trading cryptocurrencies behind bars using smuggled phones—exposing security flaws in New Zealand’s correctional oversight.(RNZ)

📱 Prisoner Turns to Crypto Amid High-Security Confines

In a recent hearing before the New Zealand Parole Board, convicted murderer and prison escapee Phillip John Smith revealed he had engaged in cryptocurrency trading and investment while incarcerated. According to Smith’s testimony, the activity began after he gained access to illicit mobile devices and proceeded to educate himself by watching online tutorials and experimenting with small sums of money.

💹 Methodology and Scope of the Trading

Smith stated that he used one of the smuggled cellphones to watch videos on platforms such as YouTube and learn about crypto-trading strategies. He said he initially made trial trades with “demo money” and then slowly shifted to using “real money on a very small scale” to test his approach.

🚨 Contraband and Institutional Response

Officials discovered two mobile phones in Smith’s cell in June of last year, in violation of the Department of Corrections (NZ)’ internal rules and the statutory prohibition under the Corrections Act. The discovery triggered internal disciplinary proceedings and raised Smith’s security classification.

⚖️ Broader Context and Criminal History

Smith was originally jailed for life in 1995 for the murder of a father of a boy he had sexually abused. He made international headlines in 2014 when he fled to South America while on temporary release, only to be recaptured after six days. He later pleaded guilty in July 2023 to multiple dishonesty offences involving fraud and misuse of government-loan schemes from within prison. (NZ Herald)

🔐 Implications for Crypto Oversight in Custodial Settings

Smith’s confession highlights potential vulnerabilities in the intersection of custodial environments and digital asset education. His ability to access contraband devices enabled him to self-educate and engage in trading activities that typically require outside connectivity and exchange platforms. The case raises questions about how prisons monitor inmates’ digital involvement and whether decentralized financial tools are sufficiently controlled.

💡 Key Takeaways

• Smith admitted to using illicit phones to learn and experiment with crypto trades.
• He started using real funds on a limited basis after demo-trading success.
• Prison authorities discovered the device breach and elevated his security status.
• Smith’s broader criminal record includes escape, murder, and fraud from within prison.
• The incident suggests a need for tightened digital safeguards in correctional facilities.

⚠️ Disclaimer

This article is based on publicly reported court and parole hearing statements and media coverage. While the main facts are drawn from verified sources, the extent of Smith’s cryptocurrency holdings, the exact platforms used, and the profits (if any) from his trading are not detailed in the publicly available record.

This article was created with AI assistance and curated by DNIR Staff for accuracy and editorial standards.  Source: Digital News & Investigative Reports (DNIR) — cnirbc.com