Charles O. Parks III, also known as "CP3O," a self-proclaimed crypto influencer, has been sentenced to one year and one day in federal prison for orchestrating a large-scale cryptojacking operation. The Brooklyn federal court handed down the sentence after Parks admitted to defrauding two major cloud computing providers of over $3.5 million in resources. Parks pleaded guilty to wire fraud in December 2024. In addition to the prison sentence, Parks was ordered to forfeit $500,000 and a Mercedes-Benz purchased with the ill-gotten gains. The amount of restitution will be determined later.
Between January and August 2021, Parks exploited the cloud service providers' resources to mine approximately $1 million in cryptocurrencies, including Ether (ETH), Litecoin (LTC), and Monero (XMR). Cryptojacking, also known as malicious cryptomining, involves the unauthorized use of another party's resources, such as computing power and electricity, to mine cryptocurrency.
Parks created multiple accounts with the cloud service providers using fictitious business names like "MultiMillionaire LLC" and "CP3O LLC". He deceived the providers into granting him increased access to their services, enabling him to mine cryptocurrencies. Parks misled the providers by claiming the computing power would support an online training business focused on media, tech, and business strategy. However, prosecutors stated that no such training company existed. As the cloud providers questioned the unusual data consumption and growing unpaid subscription balances, Parks deflected scrutiny.
Prosecutors assert that Parks laundered the illegally obtained gains through cryptocurrency exchanges, an NFT marketplace, and traditional bank accounts. He structured transactions to evade federal reporting requirements, making multiple transactions of $9,999 and smaller amounts from crypto exchanges to a bank account. The funds financed a lavish lifestyle, including the purchase of a Mercedes-Benz, jewelry, and luxury travel expenses.
U.S. Attorney Nocella Jr. described Parks as a "fraudster" whose path to wealth was built on lies and theft. He stated that his office remains committed to prosecuting criminal actors who take advantage of new technologies to engage in fraud and deceit. FBI Assistant Director in Charge Raia stated that the sentencing reaffirms the FBI's commitment to dismantling any cryptojacking operation that targets legitimate companies for nefarious reasons.
The case highlights the increasing threat of cryptojacking and the efforts of law enforcement to combat it. Cryptojacking attacks have been on the rise, with attackers exploiting vulnerabilities in web applications and misconfigured systems to deploy cryptocurrency miners. These attacks can result in significant financial losses for victims and can be difficult to detect.
