Former Crypto Influencer Sentenced to 1 Year for $3.5M Cloud Mining Fraud Scheme

Generated by AI AgentCoin World
Monday, Aug 18, 2025 8:01 am ET1min read
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Aime RobotAime Summary

- Charles Parks III, a crypto influencer, was sentenced to 1 year in prison for a $3.5M cloud mining fraud scheme involving fake companies and stolen computing resources.

- He deceived cloud providers by claiming to build an education platform, instead using their infrastructure to mine $1M in Ethereum, Litecoin, and Monero while evading accountability.

- Parks laundered illicit funds through crypto exchanges and luxury purchases, highlighting vulnerabilities in cloud infrastructure oversight and digital business verification.

- Prosecutors emphasized the case as part of a broader trend of applying traditional fraud laws to crypto crimes, signaling increased regulatory scrutiny of deceptive digital financial activities.

Charles O. Parks III, a former cryptocurrency influencer known online as “CP3O,” was sentenced to one year and one day in federal prison on August 18, 2025, for a $3.5 million cryptojacking scheme [1]. Parks, 46, admitted in December 2024 to defrauding two major cloud computing providers by misrepresenting his intentions to launch an online education platform [2]. Instead, he used the stolen computing power to mine nearly $1 million in cryptocurrencies, including

Ethereum
,
Litecoin
, and Monero [3].

Parks created fictitious companies such as "MultiMillionaire LLC" and "CP3O LLC" to secure high-level computing resources from cloud service providers [1]. He maintained the deception by fabricating claims about serving thousands of students, while actually running cryptocurrency mining scripts on the platforms. When confronted about irregularities, including excessive data usage and unpaid bills, Parks continued to evade accountability [2].

The illegally mined cryptocurrency was laundered through crypto exchanges, NFT marketplaces, and traditional banks [1]. Parks spent the illicit funds on luxury items, including a Mercedes-Benz, jewelry, and high-end travel [3]. His online presence as a “Professional. Media. Technology. Strategy. Consultant” further amplified his persona, as he boasted about his earnings on social media and in a 2022 YouTube video, where he claimed to have developed a “really nice crypto script” that allowed him to avoid working for the rest of the year [1].

Parks will forfeit $500,000 and the Mercedes-Benz, with restitution still pending [2]. Prosecutors emphasized that the case exposed weaknesses in cloud infrastructure oversight and the need for more robust verification of digital business proposals [4]. U.S. authorities have increasingly applied traditional fraud laws to cryptocurrency-related crimes, and Parks’ sentencing reflects a broader trend of holding individuals accountable for deceptive and unauthorized digital financial activities [3].

The case signals growing regulatory scrutiny of crypto-related offenses, particularly those that exploit high-trust digital environments [4]. As the industry continues to evolve, the legal framework is adapting to ensure that fraudulent schemes are addressed with appropriate consequences [2]. Parks’ sentence serves as a warning that unauthorized mining and digital fraud will not go unpunished [3].

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/

[4] Cryptonews - https://cryptonews.com/news/crypto-influencer-sentenced-to-1-year-in-prison-for-3-5-million-cloud-mining-scam/