Crypto Influencer Jailed for $3.5M Cryptojacking Scheme
Crypto Influencer Sentenced for $3.5M Fraud
A crypto influencer has been sentenced to just over a year in prison for a large-scale cryptojacking operation, according to US prosecutors. The scheme defrauded two major cloud computing providers of significant resources.
The Department of Justice (DOJ) announced that Charles O. Parks III, also known as “CP3O,” was sentenced in a Brooklyn federal court to one year and one day in prison. He was found guilty of defrauding computing providers of more than $3.5 million in resources.
Parks utilized fake corporate identities like “MultiMillionaire LLC” and “CP3O LLC” to deceive two unnamed cloud providers. He gained elevated computing privileges, which he then exploited to mine nearly $1 million worth of Ether (ETH), Litecoin (LTC), and Monero (XMR) between January and August 2021, according to the prosecutors.
Details of the Cryptojacking Scheme
Cryptojacking involves using computing power or electricity without authorization to mine cryptocurrency. Parks pleaded guilty to wire fraud in December after facing charges of money laundering and unlawful transactions that could have resulted in a 50-year maximum prison sentence.
“Charles Parks manipulated technology, stole millions in computer resources, and illegally mined cryptocurrency — and today’s sentencing holds him fully accountable for his deceitful actions,” stated New York City Police Department commissioner Jessica S. Tisch.
Deceptive Practices Unveiled
The DOJ revealed that Parks misled one provider by claiming he would use the computing resources to establish an online training firm focused on media, tech, and business strategy.
He stated that he aimed to serve 10,000 students. However, prosecutors determined that “in reality, there was no training company, and there were no students,” and the resources were solely used for crypto mining.
Parks reportedly deflected inquiries from the providers regarding “questionable data usage and mounting unpaid subscription balances.”
Laundering and Luxury Spending
Prosecutors stated that Parks laundered the mined cryptocurrency through crypto exchanges, an NFT marketplace, online payment processors, and banks. He converted the crypto into cash to fund luxury purchases, including a Mercedes-Benz, jewelry, and first-class travel.
An indictment from April 2024 indicated that Parks created multiple accounts with a subsidiary of a “cloud computing and consumer electronic device company headquartered in Seattle, Washington,” and a firm that makes “personal computers and related services headquartered in Redmond, Washington.”
He was ordered to forfeit $500,000 and the Mercedes-Benz, with a court to decide restitution at a later date.
Building a Reputation on Illicit Gains
Parks allegedly boasted about his profits online, aiming to establish credibility as a crypto influencer. He shared tips for achieving what he termed a “MultiMillionaire Mentality” in a September 2022 YouTube video.
His website promoted a subscription-based self-improvement and wealth coaching program for $10 a month, with optional one-on-one consulting at $150 per month and rewards paid in his crypto token.
US Attorney Nocella Jr. commented that Parks was not the innovator he portrayed himself to be. “In the end he was merely a fraudster whose secret to getting rich quick was lying and stealing.”