Charles O Parks III, known online as "CP3O," has pleaded guilty to orchestrating a cryptomining fraud using stolen cloud computing resources valued at more than $3.5 million. The 45-year-old faces up to 20 years in prison for wire fraud.
Operation Timeframe: Parks conducted his scheme over eight months in 2021.
Modus Operandi: Using false identities and company names, Parks registered multiple accounts with two prominent cloud providers—likely those headquartered in Seattle and Redmond—to access their computing power.
Cryptocurrency Mined: Parks used this unauthorized access to mine cryptocurrencies such as Ether (ETH), Litecoin (LTC), and Monero (XMR).
Detection and Evasion: When accounts were suspended for non-payment, he quickly created new ones to continue his operations. He avoided paying by providing misleading responses to the providers' inquiries.
Financial Gains: Parks generated approximately $970,000 from these illicit activities.
Lifestyle: He converted his earnings into US dollars and spent lavishly on luxury cars, jewelry, and travel.
Money Laundering Efforts: Parks attempted to hide his profits by funneling them through various channels, including cryptocurrency exchanges and traditional banks, bypassing federal reporting requirements.
Legal Proceedings: Parks admitted guilt in a federal court in Brooklyn, New York.
Official Statement: Breon Peace, U.S. Attorney for the Eastern District of New York, highlighted the case's resolution as a testament to pursuing individuals who exploit advanced cyber fraud for personal gain. This case underscores the ongoing challenges in combating sophisticated cyber schemes exploiting the rapidly evolving cryptocurrency market.