A federal court in Brooklyn has jailed a crypto influencer operating a large-scale cryptojacking scheme worth millions of dollars. According to prosecutors, the defendant, Charles Parks III, also known as CP30, stole more than $3.5 million in cloud computing services to mine digital assets.
Cryptojacking, which is also referred to as illegal crypto mining, involves the unauthorized use or hijacking of another person’s resources, including electricity, hardware, or computing power, to mine digital assets.
According to prosecutors, Parks defrauded two popular cloud computing services of the resources, using them to mine about $1 million in digital assets. They mentioned that he carried out the act from January 2021 through August 2021, operating a large-scale operation.
Influencer sentenced to jail for cryptojacking scheme
Authorities mentioned that the crypto influencer created a variety of names, corporate affiliations, and email addresses, including emails with domain names from companies he operated. Documents showed that he used domain names like “MultiMillionaire LLC” and “CP3O LLC” under his control to gain access to massive amounts of computing power and storage illegally.
Parks also deceived the providers into approving several privileges and benefits, including increased levels of computing services, and deflected inquiries from the providers regarding questionable data usage and mounting unpaid subscription balances.
For example, he lied to one company that he was using the computing resources to create “a global online training company that focuses on media, technology, and business strategy.”
He lied that his goal was to enable the service to get to about 10,000 students simultaneously, while in reality, there was no training company, and neither were there students. Parks used the fraudulently obtained computing resources to mine several digital assets, including Ethereum, Litecoin, and Monero.
Parks then converted and laundered the crypto proceeds.
Authorities promise to crack down on criminals
Authorities mentioned that he used several platforms like crypto exchanges, non-fungible (NFT) marketplaces, an online payment provider, and traditional bank accounts to move the money. He also structured the movement of funds to avoid transaction reporting requirements under federal law. After converting his ill-gotten assets into cash, the crypto influencer used the proceeds to purchase luxury vehicles, pay for travel expenses, and first-class hotel rooms.
Parks boasted about his profits, posing as an influencer to earn credibility. In a YouTube video he posted in September 2022, Parks shared tips for achieving what he called the MultiMillionaire Mentality.”
“Last year I set a goal for myself that I wanted to make seven digits or more, and so I spent the first ten days of the year creating a—we’ll just call it a really nice crypto script—that I was able to use at scale. And after working that ten days, let’s just put it this way, I didn’t work the rest of the year,” Parks said in one of his videos.
Speaking about his case, the US Attorney for the Eastern District of New York said, “While Parks gloated across social media platforms, he failed to mention his purported success was rooted in deceit and theft. May today’s sentencing reaffirm the FBI’s steadfast commitment to dismantling any cryptojacking operation that targets legitimate companies for nefarious reasons.”
Parks was charged with wire fraud, money laundering, and engaging in unlawful monetary transactions in connection with the scheme. He already pleaded guilty to the scheme in December 2024, and would surrender about $500,000 and a Mercedes-Benz luxury vehicle purchased with proceeds from the criminal activity. The amount of restitution is expected to be determined at a later date.
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Source: https://www.cryptopolitan.com/crypto-influencer-jailed-for-cryptojacking/
