Former Crypto Influencer Parks Sentenced to 1 Year in $3.5M Cloud Mining Fraud

Charles O. Parks III, a former cryptocurrency influencer, was sentenced on August 18, 2025, to one year and one day in federal prison for his role in a large-scale cryptojacking scheme that defrauded cloud service providers of over $3.5 million [1]. Parks had previously pleaded guilty in December 2024 to multiple charges, including wire fraud, money laundering, and unauthorized transactions [2]. Using stolen cloud computing resources, he mined nearly $1 million in cryptocurrencies such as Ether, Litecoin, and Monero while misrepresenting his intentions to providers [3].

The scheme involved Parks creating fake corporate identities to deceive cloud providers into believing he was launching a legitimate online training business. In reality, the resources were used solely for cryptocurrency mining. Prosecutors emphasized that Parks misrepresented key details, including the intended use of data and failure to address unpaid balances [3]. The illicitly mined crypto was later laundered to finance luxury items, including a Mercedes-Benz and high-end jewelry [3].

The case illustrates the growing regulatory scrutiny of crypto-related crimes, particularly those involving unauthorized use of computing power. Cryptojacking, while often hard to detect, carries significant legal risks, as demonstrated by Parks’ prison sentence. The operation also exposed vulnerabilities in cloud infrastructure oversight, highlighting the need for enhanced due diligence in verifying business proposals within the digital economy [1].

Parks, who also used the nickname “CP30” in reference to a character from the Star Wars franchise, is now among several high-profile figures who have faced legal action for exploiting technological weaknesses for personal gain [3]. The case serves as a warning to companies and individuals operating in the decentralized finance ecosystem to adopt stronger cybersecurity practices and remain cautious in high-trust digital environments [2].

The U.S. judiciary is increasingly applying traditional fraud and cybercrime laws to cryptocurrency-related offenses, reflecting the broader need to adapt legal frameworks to emerging technologies [2]. Parks’ sentencing is likely to reinforce the message that unauthorized mining and financial deception will continue to face rigorous legal consequences.

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/