Nebraska Man Faces 30 Years in Prison for Major Cryptojacking Scheme
Nebraska Man Faces 30 Years in Prison for Major Cryptojacking Scheme
A Nebraska man is facing up to 30 years in prison after being charged in connection with a major cryptojacking scheme. Charles O. Parks III, also known as “CP3O,” has been indicted for defrauding two prominent cloud service providers, according to the United States Attorney’s office in Brooklyn.
Cryptojacking is a cyberattack where attackers illegally hijack a victim’s system to mine cryptocurrency using its resources. In this case, Parks allegedly stole $3.5 million worth of computational resources from the service providers, which were then used to mine $970,000 worth of cryptocurrencies. The charges against him include wire fraud, money laundering, and engaging in unlawful monetary transactions.
Parks was apprehended on April 13, 2024, and is set to appear before a federal court in Omaha on April 16. The case is being led by the United States Attorney for the Eastern District of New York, the FBI, and the NYPD.
During the scheme, which ran from January to August 2021, Parks set up multiple accounts with the cloud service providers using various business names he created. He then used these accounts to access significant amounts of computer processing power and storage space without paying for them. He also managed to trick the providers into offering him elevated access to their services.
Prosecutors allege that Parks laundered the funds through multiple cryptocurrency exchanges, an NFT marketplace, and traditional bank accounts. He used the illicit funds for personal gains, including purchasing a luxury car, jewelry, and first-class travel expenses.
If found guilty, Parks could face a maximum of 20 years in prison for wire fraud and 10 years for illegal transaction charges. This case is just one example of the growing trend of cybercriminals using advanced technology to commit financial crimes.
