Nebraska Man Busted in $3.5 Million Cryptojacking Scheme

Charles O. Parks III, nicknamed “CP3O,” has been indicted for orchestrating a $3.5 million cryptojacking scheme targeting major cloud computing services.

The US Attorney’s Office in the Eastern District of New York revealed the April 15, 2024, charges. He could spend up to 50 years in prison if convicted.

Nebraskan Cryptojacker Had a Lavish Lifestyle Funded by Fraud

Parks, from Nebraska, allegedly defrauded two cloud computing service providers out of over $3.5 million in resources. Furthermore, prosecutors say he used this stolen processing power to mine nearly $1 million of cryptocurrencies like Ethereum, Litecoin, and Monero.

The charges against Parks include wire fraud, money laundering, and engaging in unlawful monetary transactions. He was arrested in Nebraska on April 13 and is scheduled for a court appearance in Omaha on April 16.

Read more: What Is Cryptojacking?

“Parks stole millions worth of computing resources to enrich himself. We will continue to prosecute those who use technology to commit fraud,” US Attorney Breon Peace stated.

According to the indictment, Parks operated from January to August 2021. He deceived cloud providers by using multiple aliases and corporate entities, such as “MultiMillionaire LLC” and “CP3O LLC,” to obtain vast amounts of computing power without payment.

Furthermore, Parks converted digital currencies through exchanges, an NFT marketplace, and various banking channels to cover his tracks. He is accused of structuring transactions to avoid federal reporting requirements. Prosecutors say Parks used the illicit proceeds to fund a lavish lifestyle, including a Mercedes Benz, jewelry, and first-class travel.

Cryptojacking itself is the unauthorized use of someone else’s computing resources to mine cryptocurrency. Instead of spending money on crypto mining hardware, the hackers install malware onto the victim’s device to mine crypto without their consent or knowledge.

By stealing computing resources, cryptojackers get an unfair advantage over legitimate Bitcoin miners without incurring costly overheads.

Read more: 15 Most Common Crypto Scams To Look Out For

A 2023 SonicWall report revealed a 339% increase to $332.3 million in cryptojacking incidents compared to the previous period, with losses significantly exceeding those from malware and ransomware attacks.