- In order to generate $1 million worth of ether, litecoin, monero, and other cryptocurrencies, a Nebraska man is accused of stealing $3.5 million in cloud computing services.
- Due to allegations of wire fraud and money laundering pertaining to his alleged cryptojacking, he could spend up to 20 years in prison.
The U.S. Department of Justice claims that 45-year-old Charles O. Parks III stole $3.5 million in cloud computing services to generate $1 million worth of Ether, Litecoin, Monero, and other cryptocurrencies in an accused “cryptojacking” scheme.
Cryptojacking is the practice of mining cryptocurrencies for yourself using the processing power of another person.
Parks allegedly committed wire fraud, money laundering, and illicit financial activities in addition to defrauding two “well-known” cloud computing providers, according to an official government announcement. Following his original arrest in Nebraska on April 13, Parks is scheduled to appear in federal court for the first time on April 16.
According to the federal announcement, Parks allegedly registered “massive amounts” of computing processing power without paying for it by using multiple aliases, including “MultiMillionaire LLC” and “CP3O LLC.”
Additionally, he is accused of overcharging for cloud computing services, delaying payment, and dodging inquiries from cloud computing companies regarding excessive data usage and unused subscriptions.
In order to “disguise the audit trail and disassociate the funds from the fraud,” Parks then transferred and laundered money using, among other locations, NFT markets and cryptocurrency exchanges, the announcement continues.
Assistant Director-in-Charge Smith of the Federal Bureau of Investigation stated in a release that “Charles Parks, also known as CP3O, allegedly created a cryptojacking scheme to defraud prominent cloud service providers of millions and illegally mine approximately $1 million in cryptocurrency for personal use.”
“Criminals are getting better at using digital tools and hiding behind cutting-edge technology, which frequently results in their victims suffering severe financial losses. The FBI is dedicated to relentlessly pursuing individuals who try to create novel methods of committing crimes.”
According to the announcement, Parks may spend up to 20 years in jail for wire fraud and money laundering offenses. He could also spend 10 years for engaging in unlawful financial transactions related to his alleged cryptojacking.
Commissioner Edward A. Caban of the New York Police Department stated in the statement, “This arrest demonstrates the power of law enforcement joining forces with the private sector to identify and track down cybercriminals, and to put an end to their sophisticated thievery.”
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
