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Fraud

Cryptojacking Scheme Leader Sentenced to Prison

Strategic Insights

— 1 min read

Charles O. Parks III, also known as "CP3O," was sentenced to one year and one day in prison for operating a large-scale "cryptojacking" operation that defrauded two well-known providers of cloud computing services out of more than $3.5 million worth of computing resources. Parks used the stolen resources to mine nearly $1 million in cryptocurrency, which he then laundered and used to make extravagant purchases. He was also ordered to forfeit $500,000 and a Mercedes Benz luxury car purchased with proceeds from the scheme.

Key Takeaways:

  • Charles O. Parks III, also known as "CP3O," was sentenced to one year and one day in prison for operating a large-scale "cryptojacking" operation.
  • Parks defrauded two well-known providers of cloud computing services out of more than $3.5 million worth of computing resources to mine nearly $1 million in cryptocurrency.
  • Parks used a variety of names, corporate affiliations, and email addresses to register numerous accounts with the service providers and gain access to massive amounts of computing processing power and storage.
  • Parks lied to the providers about his use of the computing resources, telling one provider that he was using them to build an online training company.
  • Parks laundered the cryptocurrency proceeds through various channels, including cryptocurrency exchanges, an NFT marketplace, an online payment provider, and traditional bank accounts.
  • Parks made extravagant purchases, including a Mercedes-Benz, jewelry, and first-class hotel rooms, using the proceeds from the scheme.
  • Parks boasted about his profits on his YouTube channel, describing the fraudulent scheme as a way to achieve a "MultiMillionaire Mentality."
  • The government's case is being handled by the Office's National Security and Cybercrime Section.
  • Assistant United States Attorney Andrew D. Reich is in charge of the prosecution.

Statistics:

  • Quantities:

+ More than $3.5 million in computing resources stolen

+ Nearly $1 million in cryptocurrency mined

+ $500,000 to be forfeited

+ 1 Mercedes-Benz luxury car to be forfeited

  • Timeframes:

+ From January 2021 to August 2021, Parks operated the cryptojacking scheme

+ September 2022: Parks uploaded a video to his YouTube channel boasting about his profits

Sources:

  • United States Attorney's Office for the Eastern District of New York
  • Federal Bureau of Investigation, New York Field Office (FBI)
  • New York City Police Department (NYPD)
  • United States District Court for the Eastern District of New York (E.D.N.Y.) Docket No. 24-CR-105 (EK)

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