A Nebraska man operated a large-scale “cryptojacking” scheme that defrauded cloud computing service providers out of more than $3.5 million worth of services, the U.S. Attorney’s Office said Monday.
Charles O. Parks III, 45, also known as “CP3O,” has been charged with wire fraud, money laundering, and engaging in unlawful monetary transactions in connection with the scheme, according to the U.S. Attorney’s Office for the Eastern District of New York. Parks was arrested Saturday and is expected to make his initial court appearance on Tuesday.
According to an indictment unsealed on Monday, Parks stole from two well-known providers of cloud computing services in order to mine cryptocurrency — a digital currency that does not rely on a central authority, such as a government or central bank. Prosecutors said Parks acquired over $970,000 in cryptocurrency, which he laundered through cryptocurrency wallets, cryptocurrency exchanges, and bank accounts.
Parker faces a maximum sentence of 20 years for the wire fraud and money laundering charges in addition to 10 years for the unlawful monetary transactions charges, according to the U.S. Attorney’s Office.
His arrest is the latest case of cryptojacking, which is also referred to as malicious cryptomining, the U.S. Attorney’s Office said. Cryptojacking is a type of cybercrime where a victim’s computer, tablet, or mobile device is secretly used to generate cryptocurrency, according to the New Jersey Institute of Technology.
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