Crypto influencer known as Parks has been sentenced to one year in prison for fraudulently obtaining over $3.5 million to mine cryptocurrencies using cloud computing resources.
Deception and Cloud Resource Trading
Parks created fake companies such as "MultiMillionaire LLC" and "CP3O LLC" to gain access to cloud computing services. Using these resources, he mined cryptocurrencies such as Ether, Litecoin, and Monero, managing to obtain nearly $1 million between January and August 2021.
Money Laundering from Crypto Mining
Authorities reported that Parks pretended to run an online training business, which in reality did not exist. The services provided by this company were solely used for crypto mining. The illicitly obtained funds were funneled through exchanges, NFT platforms, and banks, then converted into cash. Prosecutors noted that Parks used the profits to purchase luxury items such as a Mercedes-Benz and jewelry.
Consequences and Authorities' Response
Facing charges that could lead to up to 50 years in prison, Parks pleaded guilty to wire fraud in December 2024. He was ordered to forfeit $500,000 and the luxury vehicle, with the restitution amount still to be determined. Prosecutors dismissed his image as a successful crypto influencer, emphasizing that his wealth was acquired through deception.
Parks' case highlights the risks of fraud in the crypto industry and the need for increased accountability among market participants.
