The Brooklyn U.S. Attorney’s Office has charged Charles O. Parks III, also known as “CP3O,” with wire fraud and money laundering charges. Parks allegedly defrauded two cloud computing providers, resulting in a “large-scale illegal ‘cryptojacking’ operation,” where he mined cryptocurrencies worth $970,000 using stolen resources.
Parks purportedly defrauded the cloud computing providers of $3.5 million by creating multiple fake accounts using false identities and affiliations. He allegedly deceived the companies into granting elevated privileges and deferred billing accommodations.
Parks was arrested in Nebraska on April 13 and is charged with wire fraud, money laundering, and engaging in unlawful monetary transactions. He faces a maximum sentence of 50 years in prison and is scheduled to appear before a federal court in Omaha on April 16.
The indictment claims that Parks laundered the proceeds of his cryptojacking operation through various channels, including a decentralized cryptocurrency exchange, a payments provider, bank accounts, and a non-fungible token (NFT) marketplace headquartered in New York City.
To avoid detection, Parks allegedly structured his payments to stay below the $10,000 threshold for mandatory transaction reporting under federal law. Prosecutors uncovered instances where he moved funds just below this threshold from the crypto exchange to a bank account.
Prosecutors allege that Parks used the proceeds from his illegal activities 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 criminal actors who exploit sophisticated technology for fraudulent activities, reaffirming their dedication to combating fraud and deceit.
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