Nebraska Man Faces Three Decades Behind Bars for Multi-Million Dollar Cryptojacking Scheme

A Nebraska man, Charles O. Parks III, has been indicted for allegedly defrauding cloud service providers of $3.5 million in computational resources to mine $970,000 worth of cryptocurrencies in a major cryptojacking scheme. He faces charges of wire fraud, money laundering, and engaging in unlawful monetary transactions, and could face up to 30 years in prison if convicted.

Nebraska Man Faces 30-Year Prison Sentence for Multi-Million Dollar Cryptojacking Scheme

Brooklyn, New York - A Nebraska man has been charged with defrauding two major cloud service providers in a sophisticated cryptojacking scheme that netted him nearly $1 million in illegally mined cryptocurrency.

Charles O. Parks III, also known as "CP3O," was indicted on April 15 by the United States Attorney's Office in Brooklyn. The indictment alleges that Parks engaged in wire fraud, money laundering, and unlawful monetary transactions in connection with the scheme.

According to the indictment, Parks utilized a technique known as cryptojacking, in which attackers hijack a victim's system to mine cryptocurrency using its processing power or electricity. The attack is often undetected by the victim's system until significant damage has been inflicted.

Between January 2021 and August 2021, Parks allegedly stole $3.5 million worth of computational resources from the cloud service providers. He used these resources to mine approximately $970,000 worth of various cryptocurrencies, including Ether (ETH), Litecoin (LTC), and Monero (XMR).

Parks employed deceptive tactics to gain access to the cloud service providers' resources. He created multiple accounts using fictitious business names, such as "MultiMillionaire LLC" and "CP3O LLC," and exploited elevated access privileges to mine cryptocurrencies.

To conceal his illicit activities, Parks laundered the proceeds through multiple cryptocurrency exchanges, an NFT marketplace, and traditional bank accounts. He structured the transactions to avoid exceeding the federal reporting threshold of $10,000.

Parks used the ill-gotten gains to finance a lavish lifestyle, including the purchase of a Mercedes Benz luxury car, jewelry, and first-class hotel and travel expenses.

"Criminals are constantly adapting their techniques to exploit digital tools and conceal their activities, causing substantial financial harm to their victims," said FBI Assistant Director-in-Charge Smith. "The FBI remains committed to aggressively pursuing those who attempt to develop innovative methods to commit crimes."

If convicted, Parks faces a maximum sentence of 20 years in prison for wire fraud and 10 years for illegal transaction charges. He is scheduled to appear before federal court in Omaha on April 16.

This case highlights the growing problem of cryptojacking and the sophistication of cybercriminals in exploiting cloud computing resources. It is imperative for businesses to implement robust cybersecurity measures and monitor their systems for suspicious activity.

Additional Cryptojacking Incidents

In a separate incident in 2024, Ukrainian authorities arrested a 29-year-old man for illicitly mining cryptocurrencies using over one million virtual servers. The suspect allegedly mined over $2 million worth of cryptocurrency before being apprehended.

In another instance, South Korean police apprehended fraudsters responsible for a $4.1 million crypto scam. The scammers lured victims into investing in a cryptocurrency platform that promised high returns but was ultimately a fraudulent scheme.

These cases demonstrate the increasing prevalence and financial impact of cryptojacking and related cybercrimes. Law enforcement agencies and cybersecurity experts continue to adapt their efforts to combat these threats and protect the public from financial harm.