Cryptojacker Gets 1-Year Prison Sentence for $3.5M Cloud Fraud
Key Takeaways
- Sentence: 1 year and 1 day in prison for wire fraud.
- Fraud Value: $3.5 million in cloud computing resources misused.
- Crypto Mined: Nearly $1 million in Ether, Litecoin, and Monero.
- Lavish Spending: Mercedes-Benz, jewelry, and first-class travel.
- Persona: Promoted a fake “MultiMillionaire Mentality” wealth program.
DOJ Sentencing and Charges
A Brooklyn federal court sentenced Charles O. Parks III, better known by his alias “CP3O,” to one year and one day in prison for orchestrating a cryptojacking scheme that defrauded two major cloud computing providers.
According to the Department of Justice (DOJ), Parks misled the providers by creating fake companies such as “MultiMillionaire LLC” and “CP3O LLC.” He secured high-level computing access under the guise of building an online training business. Instead, he exploited the resources to mine nearly $1 million worth of Ether (ETH), Litecoin (LTC), and Monero (XMR) between January and August 2021.
Parks pleaded guilty to wire fraud in December 2024. Although he originally faced additional charges of money laundering and unlawful transactions, carrying a possible 50-year maximum sentence, his plea deal resulted in a reduced penalty.
Fraudulent Schemes and Lifestyle Spending
Prosecutors revealed that Parks fabricated a story of serving 10,000 students through his alleged training firm. In reality, there were no students or services, only an elaborate mining operation. When questioned about unusual usage patterns and unpaid subscription balances, Parks deflected, delaying provider suspicions.
The crypto mining was laundered through exchanges, NFT marketplaces, and banks. Parks converted his digital assets into cash to fund a lavish lifestyle. Purchases included a Mercedes-Benz, expensive jewelry, and luxury travel in first class. He has been ordered to forfeit $500,000 and the Mercedes-Benz, with restitution to be determined at a later date.
Image as a Crypto Influencer
Beyond the fraud, Parks attempted to establish himself as a crypto influencer. He promoted a $10-per-month subscription program titled the “MultiMillionaire Mentality,” which claimed to teach financial success strategies. He also offered one-on-one coaching for $150 per session, with rewards issued in his own cryptocurrency token.
Prosecutors, however, described his online persona as a façade built on lies. “In the end he was merely a fraudster whose secret to getting rich quick was lying and stealing,” said U.S. Attorney Nocella Jr.
Authorities emphasized that this sentencing sends a strong warning to individuals exploiting cloud resources for illegal crypto mining. New York City Police Department Commissioner Jessica S. Tisch noted: “Charles Parks manipulated technology, stole millions in computer resources, and illegally mined cryptocurrency — today’s sentencing holds him fully accountable.”
