Mr Abbas, 37, who was resident in Dubai, was known for living an extravagant lifestyle and flaunting it on social media.
Hushpuppi was arrested recently in Dubai, United Arab Emirates, and extradited to the U.S.
He would be transferred to Los Angeles in the coming days, the release said.
An affidavit, alongside a criminal complaint filed in court by the U.S. authorities alleges that Mr Abbas and others used the internet to steal millions of dollars from people and companies.
The American government said Mr Abbas funded his extravagant lifestyle with stolen money.
“The FBI led the investigation of Abbas, and the United States Secret Service was also involved and provided substantial assistance.