U.S. prosecutors have pressed charges against Charles O. Parks III, also known as “CP3O,” for wire fraud and money laundering, relating to an alleged large-scale illegal "cryptojacking" scheme targeting two cloud computing providers. The indictment, announced by the U.S. Attorney’s Office in Brooklyn on April 15, accuses Parks of defrauding the companies of $3.5 million and mining cryptocurrencies valued at $970,000, including Ethereum, Litecoin, and Monero, without proper authorization.
Cryptojacking involves the unauthorized use of resources such as computing power or electricity to mine cryptocurrency. Various forms of malware can inject software into computer networks, utilizing their resources without consent.
Parks was apprehended in Nebraska on April 13 and now faces charges of wire fraud, money laundering, and engaging in illegal currency transactions. He could potentially face up to 50 years in prison and is slated to appear in federal court in Omaha on April 16.
According to the indictment, Parks allegedly created multiple accounts at subsidiaries of two companies headquartered in Washington state. Using false names, corporate affiliations, and email addresses, including accounts under the entities MultiMillionaire LLC and CP3O LLC, Parks purportedly gained unauthorized privileges and benefits from the services, such as elevated cloud computing service levels and deferred billing accommodations.
Prosecutors assert that Parks attempted to launder some of the illicitly obtained cryptocurrency through a decentralized exchange and other channels, including payment providers, bank accounts, and a New York City-based non-fungible token (NFT) marketplace. They allege that Parks structured transactions to evade federal reporting requirements, repeatedly transferring sums just below the $10,000 threshold. The indictment also alleges that Parks used the proceeds for extravagant purchases, including luxury vehicles, jewelry, and high-end travel expenses. Brooklyn U.S. Attorney Brian Pease emphasized the commitment to prosecuting individuals who exploit advanced technologies for fraudulent activities, underscoring the importance of combating such schemes in the digital age.
