U.S. Crypto Influencer Sentenced for $1M Illegal Cloud Mining Scheme

A prominent U.S. cryptocurrency influencer, Charles Parks III, also known as CP30, has been sentenced to prison for orchestrating a large-scale illegal mining scheme. Parks exploited cloud computing services, misrepresenting his intentions to gain access to vast computing power for cryptocurrency mining. Federal prosecutors stated that he defrauded two major cloud service providers, using their infrastructure to mine over $1 million in digital assets between January 2021 and August 2021 [1].

Parks created multiple corporate identities, including “MultiMillionaire LLC” and “CP3O LLC,” to mask the fraudulent nature of his activities. He fabricated claims to cloud providers, falsely stating he was establishing a global online training company aimed at serving 10,000 students. In reality, no such company existed, and the resources were used to mine Ethereum, Litecoin, and Monero [1]. Parks also misrepresented his legitimate income, boasting about his success in social media videos, including a September 2022 YouTube post where he claimed to have designed a “crypto script” that allowed him to earn seven figures with minimal effort [1].

The scheme involved not only the unauthorized use of computing resources but also the laundering of illicit proceeds through various financial channels. Parks moved the cryptocurrency through exchanges, NFT marketplaces, and traditional bank accounts, structuring his transactions to avoid triggering federal reporting requirements. The proceeds were used to fund luxury purchases, including a Mercedes-Benz and high-end travel [1].

Federal prosecutors emphasized that Parks’ actions violated multiple statutes, including wire fraud and money laundering. He pleaded guilty in December 2024 and has been ordered to surrender $500,000 in restitution, as well as the Mercedes-Benz purchased with illicit funds. The final amount of restitution will be determined at a later date [1].

U.S. authorities have made it clear that they will continue to hold individuals accountable for exploiting the crypto space for illegal gain. The U.S. Attorney for the Eastern District of New York stated that the sentencing reflects a firm commitment to dismantling cryptojacking operations and protecting legitimate businesses from cybercriminals. The case underscores the growing regulatory and law enforcement focus on crypto-related fraud, particularly when influencers use their platforms to mislead followers and manipulate market perceptions [1].

This outcome may serve as a warning to others in the crypto space who might consider leveraging their online influence for unregulated or fraudulent activities. The U.S. continues to treat digital assets with the same regulatory scrutiny applied to traditional financial instruments, reinforcing the message that innovation must not come at the cost of integrity [1].

Source:

[1] Mitrade - https://www.mitrade.com/insights/news/live-news/article-3-1045950-20250817