Cryptocurrency Influencer Sentenced for Cryptojacking
A cryptocurrency influencer has received a prison sentence of one year and one day for orchestrating a significant cryptojacking scheme that deceived two prominent cloud service providers out of more than $3.5 million. This ruling was announced by the U.S. Department of Justice (DOJ) on Friday, following the sentencing of Charles O. Parks III, also known as “CP3O”, in a Brooklyn federal court.
Details of the Scheme
Between January and August 2021, Parks utilized counterfeit business entities, including names like “MultiMillionaire LLC” and “CP3O LLC”, to secure unauthorized computing access from these cloud providers. He subsequently exploited this access to illicitly mine cryptocurrency, primarily Ether, Litecoin, and Monero, totaling around $1 million in value.
The DOJ characterized his actions as cryptojacking, a practice where individuals misuse computer resources without consent to extract cryptocurrency profit. After pleading guilty to wire fraud in December, Parks faced a series of charges, including money laundering, with the potential for a lengthy prison sentence of up to 50 years.
Misleading Claims and Laundering Profits
According to DOJ representatives, Parks fabricated a narrative to mislead one of the providers, claiming he would establish an online educational platform focused on media and tech that would cater to 10,000 students. However, prosecutors clarified that this purported training business was fictitious, and no such students existed, as the resources were instead allocated to cryptocurrency mining.
When questioned by the cloud providers about suspicious data consumption and unpaid bills, Parks attempted to deflect the inquiries, as reported by the DOJ. After generating cryptocurrency through his illicit activities, he laundered the profits via crypto exchanges, NFT marketplaces, and various financial institutions. This allowed him to convert the tokens into cash for luxury items, including a Mercedes-Benz vehicle, jewelry, and first-class plane tickets.
Legal Consequences and Future Actions
An indictment filed in April 2024 revealed that Parks created numerous accounts with a subsidiary of a well-known cloud computing and electronics company based in Seattle, alongside another firm specializing in personal computers in Redmond, Washington.
In addition to his prison term, Parks was ordered to forfeit $500,000 and the luxury car, although restitution details will be determined in a subsequent court session.
Public Persona and Deceptive Practices
Moreover, despite his criminal undertakings, Parks sought to establish himself as a credible voice in the cryptocurrency community. He launched a platform that advertised a subscription model for wealth coaching, reflecting what he termed a “MultiMillionaire Mentality.” In a September 2022 YouTube video, Parks shared advice on achieving financial success. However, U.S. Attorney Nocella Jr. emphasized that Parks was not the entrepreneurial innovator he represented himself to be, but rather just a fraud perpetrator whose method of quick wealth was based on deceit and theft.
