Former Crypto Influencer Gets 1-Year Prison Term for $3.5M Cloud Cryptojacking Scheme

Charles Parks III, a former cryptocurrency influencer known online as “CP3O,” was sentenced on August 18, 2025, to one year and one day in federal prison for his role in a $3.5 million cryptojacking scheme. The operation, which spanned from January to August 2021, exploited cloud computing services by creating fraudulent corporate identities under the pretense of launching an online education platform. Instead, the resources were used to mine cryptocurrencies, including Ether, Litecoin, and Monero, without the cloud providers’ knowledge or consent [3].

Parks illicitly mined nearly $1 million worth of cryptocurrency during the scheme, laundering the proceeds through crypto exchanges and NFT platforms to fund luxury purchases such as a Mercedes-Benz and high-end jewelry [1]. He used multiple fake identities and email addresses to bypass billing systems on platforms like Amazon Web Services and Google Cloud, spreading his activity across accounts and using tools to mask his identity. His operation was uncovered after repeated reports and a thorough FBI investigation, revealing the extent of the unauthorized use of cloud infrastructure [3].

The case has raised broader concerns about cybersecurity and regulatory oversight in the cryptocurrency industry. Prosecutors noted that Parks’ scheme highlighted vulnerabilities in cloud service providers’ due diligence processes, particularly regarding the verification of business proposals in the digital economy [2]. The legal proceedings also reflect a growing trend in the U.S. justice system, where courts are applying traditional fraud and cybercrime laws to digital assets with increasing frequency. This case serves as a legal wake-up call, emphasizing that exploiting technological weaknesses for personal financial gain will not go unpunished [2].

Parks was ordered to pay restitution and forfeit the cryptocurrency assets obtained through the scheme. While the one-year prison term may appear relatively lenient given the scale of the fraud, it sets a significant precedent, sending a clear message that even sophisticated digital crimes will face rigorous legal consequences. The case underscores the need for stronger cybersecurity measures in both corporate and individual operations within the decentralized finance ecosystem [3]. As the crypto industry continues to expand, this ruling highlights the growing attention from law enforcement and the judiciary in curbing fraudulent activities in the digital space.

Sources:

[1] AInvest - https://www.ainvest.com/news/cryptojacker-sentenced-1-year-3-5m-cloud-computing-fraud-scheme-2508/

[2] Binance - https://www.binance.com/en/square/post/28462506332042

[3] coinotag - https://en.coinotag.com/charles-o-parks-iii-sentenced-for-alleged-cryptojacking-scheme-involving-ether-and-other-cryptocurrencies/