A cryptocurrency influencer has been sentenced to one year and one day in prison after being found by U.S. prosecutors to have carried out a large-scale crypto hijacking scheme and defrauded two major cloud service providers.
The U.S. Department of Justice (DOJ) announced on Friday that Brooklyn federal court sentenced Charles O. Parks III (also known as "CP3O") to one year and one day in prison, in a case involving fraud against cloud service providers exceeding $3.5 million in resources.
Prosecutors stated that Parks used false company identities such as "MultiMillionaire LLC" and "CP3O LLC" to deceive two unnamed cloud service providers into granting him elevated permissions, and from January to August 2021, he exploited these permissions to mine nearly $1 million worth of Ethereum (ETH), Litecoin (LTC), and Monero (XMR).
Crypto hijacking refers to the unauthorized use of computing power or electricity for cryptocurrency mining. Parks pleaded guilty to wire fraud in December and faced charges of money laundering and illegal financial transactions, which could have resulted in a maximum sentence of 50 years in prison.
New York City Police Commissioner Jessica S. Tisch stated, "Charles Parks manipulated technology, stole vast computing resources, and illegally mined cryptocurrency—today's ruling holds him fully accountable for his fraudulent actions."
According to the DOJ, Parks had told one service provider that he would use the computing resources to establish an online training company focused on media, technology, and business strategy.
He claimed the goal was to serve 10,000 students, but prosecutors pointed out that "there was actually no training company and no students," and the resources were actually used for cryptocurrency mining.
The DOJ added that when the service provider began to question "suspicious data usage and the continuously increasing unpaid subscription fees," Parks chose to deflect responsibility.
Prosecutors stated that Parks laundered the mined cryptocurrency through cryptocurrency exchanges, NFT markets, online payment platforms, and banks, converting it into cash to purchase luxury items, including a Mercedes-Benz car, jewelry, and first-class travel.
An indictment from April 2024 revealed that Parks had registered multiple accounts with a subsidiary based in Seattle, Washington, specializing in cloud computing and consumer electronics, as well as a company based in Redmond, Washington, that produces personal computers and related services.
The court ordered the forfeiture of $500,000 and a Mercedes-Benz car, with the specific amount of restitution to be determined by the court later.
Prosecutors noted that Parks frequently boasted about his profits online, attempting to establish his influence in the cryptocurrency field, and in September 2022, shared his so-called "MultiMillionaire Mentality" wealth-building mindset advice in a YouTube video.
He is still operating a website that promotes a subscription-based self-improvement and wealth guidance program for a monthly fee of $10. Additionally, he offers one-on-one consulting services for $150 per month, rewarding clients with cryptocurrency tokens he issues.
However, U.S. Attorney Nocella Jr. stated that Parks is not the innovator and thought leader he claims to be.
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Original: “Crypto Hijacker Sentenced to 1 Year in Prison After Admitting to $3 Million Fraud”
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