US Man Faces 50 Years in Prison Over Massive Cryptojacking Scheme
Summary:
The United States federal prosecutors have accused Charles O. Parks III of undertaking a massive illegal cryptojacking operation, defrauding two cloud computing services out of $3.5 million to mine cryptocurrencies using their resources without payment. Charged with wire fraud, money laundering, and engaging in unlawful monetary transactions, Parks could face up to 50 years in prison if convicted. Parks allegedly laundered some of his proceeds through a decentralized cryptocurrency exchange, and used the money for extravagant purchases.
A man in the U.S. has been indicted by federal prosecutors on charges of wire fraud and money laundering, over accusations that he tricked two cloud computing services into supporting a vast unlawful cryptojacking operation. Convictions for these crimes could lead to a sentence of up to 50 years imprisonment. The prosecuting team from the U.S. Attorney’s Office in Brooklyn announced on April 15 that Charles O. Parks III, known also as “CP3O,” is accused of deceiving the two businesses out of $3.5 million to mine cryptocurrencies including Ether (ETH), Litecoin (LTC), and Monero (XMR), using their resources without payment.
Cryptojacking involves utilising resources such as electricity or computing power without consent to facilitate crypto mining. This often involves malware that triggers crypto-mining software, sapping resources across a computer network. Parks was apprehended in Nebraska on April 13 and formally charged with wire fraud, money laundering, and participation in illegal financial transactions. The total combined sentence for these crimes could be up to 50 years. His court date is set for April 16 in a federal court in Omaha.
The indictment suggests that Parks opened several accounts with subsidiaries of two businesses, described as "Company 1," a Seattle-based electronic device and cloud computing provider, and "Company 2," a Redmond-based firm known for personal computers and similar services. Throughout most of 2021, Parks is alleged to have used false names, corporate affiliations, and email IDs, including those of companies he registered — MultiMillionaire LLC and CP3O LLC — to set up accounts with the two businesses.
It is alleged that Parks conned the services into giving him elevated privileges and benefits, which included advanced cloud computing services and deferred billing options. According to the indictment, he stonewalled when the providers initiated inquiries regarding dubious data usage and escalating unpaid subscription fees. The U.S. Attorney’s Office alleges that Parks laundered part of his mined crypto earnings through a cryptocurrency exchange identifying itself as a decentralized firm without a central office.
Court documents suggest that other funds were laundered through a payment provider, various bank accounts, and an NFT marketplace based in New York City. It appears that payments were structured so as never to exceed the $10,000 threshold, at which reporting becomes mandatory under federal law. There are several instances of Parks moving amounts totaling $9,999 or less from the cryptocurrency exchange to a bank. The prosecution suspects Parks funded an extravagant lifestyle using proceeds from these activities, with purchases including a high-end Mercedes Benz, pricey jewelry, and high-end travel. Brooklyn U.S. Attorney Breon Peace stated, "We will continue to focus on prosecuting those who use emerging, complex technologies to perpetrate age-old scams.
Published At
4/16/2024 4:54:09 AM
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