A federal court in Brooklyn has sentenced crypto influencer Charles Parks III to prison for operating a large-scale cryptojacking scheme worth millions of dollars.
Cryptojacking Scheme
Charles Parks III, also known as CP30, was accused of stealing over $3.5 million in cloud computing services to mine digital assets. Prosecutors stated that he conducted his activities from January 2021 to August 2021.
Methods of Deception
Parks created various names, corporate affiliations, and email addresses to deceive cloud service providers. He used domain names like 'MultiMillionaire LLC' and 'CP3O LLC' to illegally access substantial amounts of computing power and storage. For instance, he misled one company by claiming he was using their computing resources to establish 'a global online training company focused on media, technology, and business strategy.'
Authorities' Response
Following the conviction, authorities indicated a potential crackdown on cryptocurrency fraud. Prosecutors emphasized that Parks utilized various platforms to transfer funds—ranging from crypto exchanges to traditional bank accounts—to evade federal reporting requirements for transactions. It was noted that he boasted about his profits on social media and faced charges of wire fraud, money laundering, and unlawful monetary transactions.
The sentencing of Charles Parks III serves as a warning to other cryptocurrency fraudsters. Authorities emphasize their commitment to curbing such actions and protecting legitimate businesses.
