Earlier today in Brooklyn federal court, Charles O. Parks III, also known as "CP3O," admitted to wire fraud charges related to a significant illegal "cryptojacking" operation. Parks deceived two prominent cloud computing service providers, misappropriating over $3.5 million in computing resources to mine cryptocurrency valued at nearly $1 million. United States Magistrate Judge Cheryl L. Pollak presided over the proceedings. Parks could face up to 20 years in prison upon sentencing.
The guilty plea was announced by Breon Peace, United States Attorney for the Eastern District of New York; James E. Dennehy, Assistant Director in Charge of the FBI's New York Field Office; and Jessica S. Tisch, Commissioner of the NYPD.
"Through fraud and deceit, Parks acquired powerful computing resources worth millions of dollars to fuel his illegal cryptomining operation," stated United States Attorney Peace. "Today’s guilty plea underscores our strong commitment to prosecuting criminal actors who enrich themselves through sophisticated cryptocurrency frauds and other complex cyber schemes."
Peace expressed gratitude towards the FBI’s New York Cyber Crimes Task Force for their assistance in this case.
"This guilty plea serves as a reminder to potential cybercriminals that experienced law enforcement officers are well-equipped to detect, investigate, and put an end to financial exploitation schemes carried out in the digital world," said NYPD Commissioner Tisch. "I commend our NYPD detective who worked this case, as well as our partners at the FBI and the office of the U.S. Attorney for the Eastern District of New York, for their skill and unwavering dedication to their work, as evidenced by today’s outcome."
Cryptojacking involves unauthorized use or hijacking of another party's resources like electricity or computing power for cryptocurrency mining. Court documents reveal that from January 2021 through August 2021, Parks used various aliases and corporate entities such as "MultiMillionaire LLC" and "CP3O LLC" to create accounts with cloud providers without paying for services rendered. He mined cryptocurrencies including Ether, Litecoin, and Monero using these fraudulently obtained resources.
Parks laundered proceeds through cryptocurrency exchanges and traditional banking systems while avoiding federal transaction reporting requirements. He converted ill-gotten gains into dollars for luxury purchases including a Mercedes Benz car and high-end travel expenses.
The prosecution is managed by Assistant United States Attorneys Andrew Reich and Artie McConnell from the Office’s National Security and Cybercrime Section.
Charles O. Parks III (also known as “CP3O”) is aged 45 from Omaha, Nebraska.
E.D.N.Y Docket No.: 24-CR-105 (EK)