A federal court in Brooklyn has sentenced a man to one year and one day in prison for carrying out a $3.5 million Cryptojacking Scheme (note: when resources such as computing power or electricity are used without permission to mine crypto).
Charles O. Parks III, also known as “CP3O” was found guilty of orchestrating a sophisticated cryptojacking scheme that defrauded two major cloud computing providers of over $3.5 million in resources.
The sentencing, announced by the U.S. The Department of Justice (DOJ) comes after Parks’ guilty plea to wire fraud in December 2024.
It is also a significant ruling against unauthorized cryptocurrency mining.
How did the Cryptojacking Scheme take place?
The DOJ revealed that the accused Parks, operating under pseudonyms such as “MultiMillionaire LLC” and “CP3O LLC,” deceived cloud computing providers in Seattle and Redmond, Washington to grant him enhanced computing privileges.
Between January and August 2021, Parks exploited these privileges to mine nearly $1 million worth of cryptocurrencies in a cryptojacking scheme. This included Ether (ETH, valued at $4,267), Litecoin (LTC, $116.66), and Monero (XMR, $235.68).
Prosecutors stated that Parks misled one provider by claiming the resources would support an online training platform for media, technology, and business strategy, targeting 10,000 students.
“In reality, there was no training company, and there were no students.”
DOJ
Further, when providers questioned suspicious data usage and unpaid subscription balances, Parks evaded scrutiny, prolonging his fraudulent activities.
Laundering profits for luxury purchases
Parks laundered the illicitly mined cryptocurrencies through multiple channels.
This included crypto exchanges, a non-fungible token (NFT) marketplace, online payment processors, and banks.
Prosecutors say Parks converted the proceeds of the cryptojacking scheme to fund extravagant purchases, including a Mercedes-Benz, high-end jewelry, and first-class travel.
Parks faced additional charges of money laundering and unlawful transactions, which carried a potential 50-year prison sentence.
His guilty plea to wire fraud resulted in a reduced sentence, but he was ordered to forfeit $500,000 and the Mercedes-Benz, with restitution to be determined later.
Masquerading as a Crypto Influencer
Parks capitalized on his cryptojacking scheme to build an online persona as a crypto influencer: “CP3O”.
In a September 2022 YouTube video, he promoted a “MultiMillionaire Mentality,” sharing tips to gain credibility in the crypto community.
His website, still active, offered a subscription-based self-improvement and wealth coaching program for $10 per month, with one-on-one consulting at $150 per month and rewards in a proprietary crypto token.
U.S. Attorney Joseph Nocella Jr. condemned Parks’ actions.
“In the end, he was merely a fraudster whose secret to getting rich quickly was lying and stealing,” he said.
Meanwhile, New York City Police Department Commissioner Jessica S. Tisch added, “Charles Parks manipulated technology, stole millions in computer resources, and illegally mined cryptocurrency. Today’s sentencing holds him fully accountable for his deceitful actions.”
Parks’ cryptojacking scheme not only caused significant financial losses for the targeted providers but also highlighted vulnerabilities in cloud computing systems.
This fraud highlights the increasing risks associated with crypto with fraudsters getting more advanced and complex with the crimes. Crypto analysts continue to warn crypto enthusiasts to be safe when navigating the crypto space.
