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

A self-styled cryptocurrency influencer, Charles O. Parks III, also known online as “CP3O,” was sentenced to one year and one day in federal prison for his role in a $3.5 million cryptojacking scheme [1]. Parks admitted in December 2023 to wire fraud after creating fake companies, including “MultiMillionaire LLC” and “CP3O LLC,” to deceive cloud computing providers into granting him elevated access to their infrastructure [2]. He then used those resources to mine nearly $1 million worth of Ether, Litecoin, and Monero between January and August 2021 [3].

According to the Department of Justice, Parks misrepresented the purpose of the accounts, claiming they were for an online training business intended to serve 10,000 students. However, no such business ever existed [4]. Instead, the cloud resources were siphoned to support his illegal mining operations. When providers flagged unusual usage patterns and unpaid invoices, Parks avoided accountability and continued the exploitation [5].

The scheme generated significant illegal gains, which Parks laundered through cryptocurrency exchanges, NFT platforms, and banks. He converted the proceeds into cash to fund a lavish lifestyle, including high-end purchases such as a luxury car, first-class air travel, and jewelry [6]. As part of his guilty plea, Parks agreed to forfeit $500,000 in assets and his Mercedes-Benz. Further restitution will be determined after additional court proceedings [7].

Despite the illicit nature of his earnings, Parks leveraged his wealth to enhance his image as a crypto thought leader, promoting a “MultiMillionaire Mentality” and offering paid online coaching services. He charged $10 monthly for self-improvement content and $150 for one-on-one consultations, which could be paid in his own branded token [9]. His actions were described by U.S. Attorney Joseph Nocella Jr as those of a “fraudster,” emphasizing that his path to wealth was based on deception rather than innovation [7].

The case has drawn attention to the broader risks in the cryptocurrency space, particularly the use of fraudulent schemes to exploit digital infrastructure. The sentencing was praised by New York City Police Commissioner Jessica S. Tisch, who noted it demonstrated accountability for “manipulating technology to steal millions in computing resources” [11]. The case also highlights the growing regulatory and law enforcement scrutiny of crypto influencers and the need for greater oversight of digital assets [12].

This incident serves as a cautionary example of how cloud computing resources can be misused and the consequences for those who attempt to monetize them through deceptive practices. The outcome reinforces the importance of transparency and due diligence in the fast-evolving digital economy [13].

Sources:

[1] Yahoo (https://finance.yahoo.com/news/crypto-influencer-jailed-3-5m-113103485.html)

[2] TradingView (https://www.tradingview.com/news/cointelegraph:ea53b0b30094b:0-cryptojacker-gets-1-year-prison-after-admitting-to-3-5m-fraud/)

[3] CoinCentral (https://coincentral.com/crypto-fraudster-charles-parks-gets-1-year-jail-for-3-5m-cryptojacking/)

[4] Binance (https://www.binance.com/en/square/post/08-18-2025-crypto-influencer-sentenced-for-cryptojacking-scheme-defrauding-cloud-providers-28462506332042)

[5] AInvest (https://www.ainvest.com/news/crypto-influencer-sentenced-1-year-3-5m-cloud-mining-fraud-scheme-2508/)

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

[7] Coinpedia (https://coinpedia.org/uncategorized/crypto-influencer-charles-parks-iii-sentenced-to-one-year/amp/)

[9] BitDegree (https://www.bitdegree.org/crypto/news/crypto-influencer-cp3o-jailed-for-3-5-million-cloud-mining-fraud)

[11] X (https://x.com/cryptonews/status/1957325472385171726)