A Nebraska man allegedly stole $3.5 million in cloud computing services to mine $1 million in ether, litecoin, monero and other cryptocurrencies.
He faces up to 20 years of prison for wire fraud and money laundering charges related to his purported cryptojacking.
Charles O. Parks III, 45, allegedly stole $3.5 million in cloud computing services to mine $1 million in ether, litecoin, monero and other cryptocurrencies in a purported “cryptojacking” scheme, according to the U.S. Department of Justice.
Cryptojacking involves using someone else’s computer power to mine cryptocurrency for yourself. According to an official government release, Parks allegedly defrauded two “well-known” cloud computing providers, wire fraud, money laundering and illicit monetary transactions. Parks will make his first federal court appearance on April 16 after his initial arrest on April 13 in Nebraska.
Parks purportedly used numerous aliases such as “MultiMillionaire LLC” and “CP3O LLC” to register obtain “massive amounts” of computing processing power without paying for it, the government release continues. He also allegedly elevated levels of cloud computing services, deferred billing accommodations and avoided questions from the cloud computing firms about large data usage and unpaid subscriptions.
Parks then transferred and laundered funds through crypto exchanges and NFT marketplaces, among other avenues, to “disguise the audit trail and disassociate the funds from the fraud,” the release adds.
“Charles Parks, also known as CP3O, allegedly created a cryptojacking scheme to defraud prominent cloud service providers of millions and illegally mine approximately $1 million in cryptocurrency for personal use,” said Federal Bureau of Investigation Assistant Director-in-Charge Smith in a release. “Criminals are becoming more adept at manipulating digital tools and hiding behind advanced technology, which often causes significant financial damage to their victims. The FBI is committed to the steadfast pursuit of those who attempt to develop innovative techniques to commit crimes.”
Parks could face up to 20 years of prison for wire fraud and money laundering charges, according to the release, as well as 10 years for illegal monetary transaction charges for his purported cryptojacking.
“This arrest illustrates the power of law enforcement joining forces with the private sector to identify and track down cybercriminals, and to put an end to their sophisticated thievery,” said New York Police Department Commissioner Edward A. Caban in the statement.