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

Generated by AI AgentCoin World
Sunday, Aug 17, 2025 10:01 pm ET1min read
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Aime RobotAime Summary

- Charles Parks III was sentenced to 1 year in prison for a $3.5M crypto fraud scheme using fake corporate identities to exploit cloud computing resources.

- He mined $1M in cryptocurrencies through unauthorized cloud access, laundering proceeds via exchanges and NFT platforms to fund luxury purchases.

- Parks falsely marketed himself as a crypto influencer, promoting a paid coaching program while prosecutors called his "MultiMillionaire Mentality" a deceptive brand.

- The court ordered $500K forfeiture and Mercedes-Benz confiscation, highlighting growing regulatory scrutiny of cloud infrastructure misuse in crypto crimes.

Charles O. Parks III, who operated under the online persona “CP3O,” was sentenced to one year and one day in federal prison after pleading guilty to wire fraud in a case involving a $3.5 million cryptocurrency fraud scheme. Parks exploited the computing resources of two major cloud service providers by fabricating corporate identities, including “MultiMillionaire LLC” and “CP3O LLC,” to gain unauthorized access to their systems [1].

Between January and August 2021, Parks used the misappropriated resources to mine nearly $1 million in

Ethereum
(ETH),
Litecoin
(LTC), and Monero (XMR). He misled the providers by claiming the computing power would support an online training business focused on media, tech, and business strategy. However, according to prosecutors, no training company existed and no students were involved in the operation [1].

As the cloud providers began to question the unusual data consumption and growing unpaid subscription balances, Parks deflected scrutiny. The mined cryptocurrencies were laundered through various platforms, including crypto exchanges, NFT marketplaces, and online payment processors, and later converted into cash for personal use. The funds were reportedly used to purchase a Mercedes-Benz, luxury jewelry, and first-class travel [1].

Parks also leveraged his illicit gains to build a self-promoted image as a crypto influencer. In a YouTube video from September 2022, he discussed his so-called “MultiMillionaire Mentality” and marketed a subscription-based coaching program for $10 a month, with optional one-on-one consulting available for $150 per month. Prosecutors characterized his actions as fraudulent, noting that his reputation as a thought leader was based on deception rather than genuine innovation [1].

U.S. Attorney Nocella Jr. described Parks as a “fraudster” whose path to wealth was built on lies and theft. In addition to his prison sentence, Parks was ordered to forfeit $500,000 and the Mercedes-Benz, with restitution to be determined by the court at a later date [1].

The case underscores the increasing risks of crypto-related fraud, particularly in the misuse of cloud infrastructure. As the cryptocurrency landscape continues to expand, regulatory and law enforcement agencies are intensifying their focus on such activities to prevent future misconduct and hold perpetrators accountable [1].

Source:

[1] Cointelegraph - Cryptojacker gets 1 year for $3.5M fraud scheme (https://cointelegraph.com/news/cryptojacker-gets-1-year-for-3-million-fraud-schme)