Nebraska Man Faces Charges in $3.5 Million Cryptojacking Scheme
Nebraska Man Faces Charges for Alleged $3.5 Million Cryptojacking Scheme
A Nebraska man, Charles O. Parks III, is set to appear in court today to face charges related to allegations that he defrauded cloud service providers of more than $3.5 million in a long-running cryptojacking scheme. According to the indictment, Parks is accused of netting himself over $970,000 between January and August of 2021 by using the computational resources of two well-known cloud computing providers based in Seattle and Redmond.
Parks allegedly created multiple accounts with one of the providers, using a VPN and various false identities, including companies named CP3O LLC and MultiMillionaire LLC. He convinced the companies to increase his access to powerful instances suitable for cryptomining, but then failed to pay the resulting bills, totaling $2.58 million at one provider and $969,731 at another.
The indictment claims that Parks mined and laundered nearly $1 million worth of Ethereum, Litecoin, and Monero, using tens of thousands of high-powered instances over the course of the scheme. Despite the costs incurred outweighing the value of the tokens mined, Parks allegedly laundered the proceeds through various platforms, including crypto wallets, exchanges, and NFT marketplaces, before converting them into fiat currency.
Authorities allege that Parks was aware of US financial reporting requirements but engaged in transactions just below the $10,000 threshold to avoid detection. He reportedly used the proceeds to make lavish purchases, including a Mercedes Benz and first-class travel, while remaining in Omaha, Nebraska.
James Smith, assistant director-in-charge at the FBI, stated, “Criminals are becoming more adept at manipulating digital tools and hiding behind advanced technology, which often causes significant financial damage to their victims.” Parks faces a maximum of 20 years in prison for wire fraud and money laundering charges, as well as 10 years for unlawful monetary transactions.
Edward A. Caban, commissioner at the New York City Police Department, emphasized the collaboration between law enforcement and the private sector in tracking down cybercriminals. Parks was arrested in April 2024 and will make his first court appearance today in Nebraska. The case highlights the ongoing efforts to combat sophisticated cybercrime tactics and hold perpetrators accountable.
