Federal authorities accuse cryptojacker of deceiving cloud companies and mining $3.5M worth of cryptocurrency

A man has been charged with wire fraud and money laundering in the United States after allegedly defrauding two cloud computing providers in order to conduct a large-scale illegal cryptojacking operation. The suspect, Charles O. Parks III, also known as “CP3O,” is facing a potential prison sentence of up to 50 years. The Brooklyn U.S. Attorney’s Office announced on April 15th that Parks defrauded the two companies of $3.5 million and used their resources to mine cryptocurrencies, including Ether (ETH), Litecoin (LTC), and Monero (XMR), without paying for them. Cryptojacking involves the unauthorized use of computing power or electricity to mine cryptocurrencies. Malware can be injected into a network of computers to mine crypto and drain a small amount of resources. Parks was arrested in Nebraska on April 13th and has been charged with wire fraud, money laundering, and engaging in unlawful monetary transactions. He is scheduled to appear before a federal court in Omaha on April 16th. The indictment alleges that Parks created multiple accounts with a subsidiary of a cloud computing and consumer electronic device company based in Seattle, Washington, and a firm that produces personal computers and related services based in Redmond, Washington. From January to August 2021, Parks allegedly used various fake names, corporate affiliations, and email addresses, including those from companies he registered, to create accounts with the companies. He deceived the services into granting him elevated privileges and benefits by providing false information. When the providers began questioning the questionable data usage and the mounting unpaid subscription balances, Parks evaded their inquiries. The indictment also claims that Parks laundered some of the crypto he mined through a decentralized cryptocurrency exchange and a payments provider, as well as through bank accounts and a nonfungible token marketplace headquartered in New York City. He structured the payments to avoid the minimum transaction reporting requirements under federal law. Prosecutors allege that Parks used the proceeds for extravagant purchases, including a luxury Mercedes Benz, jewelry, and first-class hotel and travel expenses. Brooklyn U.S. Attorney Breon Peace emphasized the office’s commitment to prosecuting criminals who exploit advanced technology for fraudulent purposes.