Crypto blogger convicted of $3,5 million cloud mining scam

What’s new? Self-proclaimed crypto influencer Charles O. Parks III, known by the pseudonym “CP3O,” was sentenced to one year and one day in prison for organizing a large-scale cryptojacking scam scheme that resulted in major cloud computing providers losing more than $3,5 million.

Cryptojacking is the unauthorized use of another person’s computing resources (computer, smartphone, server) to mine cryptocurrency.

The US Department of Justice (DOJ) said Parks III used fake companies “MultiMillionaire LLC” and “CP3O LLC” to trick cloud service providers into giving him extended access.

How did the scheme work? From January to August 2021, Parks illegally mined ETH, LTC, and XMR worth approximately $1 million using stolen computing power. In December 2024, he pleaded guilty to wire fraud. He was initially also charged with money laundering and illegal transactions, which carried a maximum sentence of up to 50 years in prison. However, further investigation and his guilty plea helped reduce the sentence to 1 year and 1 day. New York City Police Department commissioner Jessica S. Tisch noted:

“Charles Parks manipulated technology, stole millions in computer resources, and illegally mined cryptocurrency — and today’s sentencing holds him fully accountable.”

According to the prosecution, Parks told one cloud service provider that he was creating an online education company specializing in media, technology, and business strategy, claiming that it would serve 10 000 students. According to the Department of Justice, the company was not organized, and instead, the resources were directed toward mining cryptocurrencies.

What are the charges? Prosecutors said Parks laundered money through exchanges, NFT platforms, payment systems, and banks, turning it into cash to fund a lavish lifestyle. His purchases included Mercedes-Benz cars, jewelry, and first-class flights. As part of the sentence, Parks was ordered to forfeit $500 000 and his Mercedes-Benz. The issue of compensation for the victims remains open.

According to the indictment, Parks attempted to use the criminal proceeds to create an image of a successful crypto expert. He posted content online promoting a “MultiMillionaire Mentality” and ran a coaching platform offering subscriptions to self-improvement courses for $10 per month and individual consultations for $150, paid for with his own tokens.