Man indicted for mining $1 million worth of cryptocurrency through ‘cryptojacking’

Charles O. Parks III, 45, stole $3.5 million from cloud computing services to mine $1 million in Ethereum, Litecoin, Monero and other cryptocurrencies through a “cryptojacking” scheme, according to the U.S. Department of Justice. I’m facing charges.

Cryptojacking means using someone else’s computer power to mine cryptocurrency for yourself. According to an official government statement, Parks is accused of defrauding two “well-known” cloud computing providers, as well as wire fraud, money laundering and illegal currency trading. Parks is scheduled to make his first federal court appearance on April 16 after his initial arrest in Nebraska on April 13.

Parks reportedly used numerous aliases, such as “MultiMillionaire LLC” and “CP3O LLC,” to register “large amounts” of computing power without payment. Government announcements continue. He also reportedly increased cloud computing service levels, deferred billing conveniences, and dodged questions from cloud computing companies about large data usage and free subscriptions.

Parks then transferred and laundered the funds through cryptocurrency exchanges and NFT marketplaces to “disguise the audit trail and separate the funds from the fraud.”

“Charles Parks, also known as CP3O, is alleged to have launched a cryptojacking scheme to defraud a prominent cloud service provider of millions of dollars and illegally mine approximately $1 million worth of cryptocurrency for personal use,” said the Federal Bureau of Investigation’s Deputy Attorney General. Smith presented. . “Criminals are becoming increasingly adept at manipulating digital tools and hiding behind advanced technologies, often causing significant financial harm to their victims. The FBI continues to pursue those who seek to develop innovative technologies to commit crimes. We are doing our best.”

According to the press release, Parks could face up to 20 years in prison for the wire fraud and money laundering charges, and 10 years in prison for the illegal currency trading charges and the cryptojacking charge.

“This arrest demonstrates the power of law enforcement joining forces with the private sector to identify and track cybercriminals and put an end to their sophisticated theft schemes,” New York Police Commissioner Edward A. Caban said in a statement.

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