Nebraska Man Faces 30 Years for Cryptojacking Scheme

A Nebraska man is facing up to 30 years in prison for his involvement in a significant cryptojacking scheme. Charles O. Parks III, also known as “CP3O,” has been indicted by the United States Attorney’s office in Brooklyn for defrauding two well-known cloud service providers.

Cryptojacking is a type of cyberattack where hackers hijack a victim’s system to mine cryptocurrency using its resources, like processing power or electricity, without their consent. This attack comes in various forms and often goes unnoticed until it’s too late.

Parks allegedly stole $3.5 million worth of computational resources from the service providers, which he used to mine cryptocurrencies valued at $970,000. Charges against him include wire fraud, money laundering, and engaging in unlawful monetary transactions.

The arrest was made on April 13, 2024, and the case is being handled by the United States Attorney for the Eastern District of New York, the Federal Bureau of Investigation, and the New York City Police Department. Parks is scheduled to appear in court on April 16 in Omaha.

During his scheme from January to August 2021, Parks created multiple accounts with the cloud service providers under different business names such as “MultiMillionaire LLC” and “CP3O LLC.” He gained access to significant computing power and storage without paying for it.

Parks also managed to deceive the providers into granting him elevated access to their services, allowing him to mine multiple cryptocurrencies like Ether, Litecoin, and Monero. He laundered the funds through various cryptocurrency exchanges, an NFT marketplace, and traditional bank accounts to avoid detection.

If convicted, Parks could face up to 20 years for wire fraud and 10 years for illegal transaction charges. He used the stolen funds for personal luxuries like a Mercedes Benz, jewelry, and high-end travel expenses.

In a similar incident in 2024, a 29-year-old individual was arrested for illegally mining over $2 million in cryptocurrencies using one million virtual servers.