A defendant could face up to 20 years in prison after pleading guilty to charges related to an illegal cryptocurrency mining operation that stole hundreds of thousands of dollars’ worth of cloud computing resources.
Charles O. Parks III, known online as “CP30,” pleaded guilty to wire fraud charges in a Brooklyn, New York, federal court after swindling two prominent cloud computing providers out of more than $3.5 million.
While unnamed by the Department of Justice, prior knowledge of the suppliers’ bases in Seattle and Redmond hinted at the identity of major tech companies affected without requiring exceptional detective skills.
Between January and August 2021, Parks created multiple accounts with various cloud providers, utilizing them to gain access to their computational resources and storage capabilities.
Notwithstanding this, Parks created accounts utilizing pseudonyms, numerous email addresses, and corporate names such as “MultiMillionaire LLC” and “CP3O LLC”. Furthermore, he did not pay for access to the cloud accounts, opting instead to deflect inquiries from the companies regarding his knowledge utilization and mounting bills.
Throughout the duration of his legal endeavors, Parks successfully handled a staggering volume of complex and high-profile cases numbering in the thousands. According to prosecutors, just a day after his previous account was terminated due to missed payments and fraudulent activity, Parks created a new account with a cloud service provider.
Parks allegedly attempted to launder the proceeds from his cryptomining activities by using a combination of cryptocurrency exchanges, non-fungible token markets, and traditional banking institutions to conceal his actions and evade reporting requirements under federal law.
According to reports, Parks allegedly raked in approximately $970,000 from his fraudulent venture.
Following the transformation of his illicit earnings into US dollars, Parks resided in opulence, indulging in extravagant expenditures such as a sleek Mercedes-Benz automobile, high-end jewelry, and upscale accommodations and travel arrangements.
“Parks allegedly exploited fraudulent means to acquire high-performance computing assets worth hundreds of thousands of dollars, which he then used to fuel his illegal cryptocurrency mining operation,” said United States Attorney for the Eastern District of New York, Breon Peace. “The plea serves as a testament to our unwavering commitment to pursuing legal action against individuals who abuse their positions to engage in sophisticated financial crimes, including cryptocurrency fraud and complex cyber-based schemes.”