Man Charged with Wire Fraud and Money Laundering in Connection with Illegal Cryptojacking Operation
US Man Charged with Wire Fraud and Money Laundering in Connection with Illegal Cryptojacking Operation
US prosecutors have brought charges against Charles O. Parks III, also known as “CP3O,” for wire fraud and money laundering related to a large-scale illegal ‘cryptojacking’ operation. Parks allegedly defrauded two cloud computing providers, resulting in losses of $3.5 million, while using their resources to mine cryptocurrencies worth approximately $970,000.
Parks, who was arrested in Nebraska on April 13, is accused of wire fraud, money laundering, and engaging in unlawful monetary transactions. He is scheduled to appear before an Omaha federal court on April 16.
According to the indictment, Parks established multiple accounts with cloud computing providers based in Seattle and Redmond, Washington, using false identities and corporate affiliations. He deceived the providers into granting him elevated privileges and benefits, and attempted to evade their inquiries when suspicious activity was noticed.
Parks allegedly laundered some of the mined cryptocurrencies through various channels to avoid detection, including a decentralized cryptocurrency exchange, bank accounts, and a New York City-based nonfungible token marketplace. He also made extravagant purchases with the proceeds, such as a luxury car, jewelry, and first-class travel expenses.
“This arrest illustrates the power of law enforcement joining forces with the private sector to identify and track down cybercriminals, and to put an end to their sophisticated thievery,” stated NYPD Commissioner Caban.
Cryptojacking has been on the rise, with hackers targeting financial firms and mining privacy cryptocurrencies like Monero. Monero’s privacy features make it attractive to cybercriminals and privacy advocates alike.
If convicted, Parks could face a maximum sentence of 50 years in prison. Prosecutors are working to combat cybercrime and protect the financial sector from such illegal activities.
