U.S. Attorney Breon S. Peace | U.S. Department of Justice
Earlier today, Charles O. Parks III, known as "CP3O," admitted guilt in a federal court in Brooklyn for conducting a significant illegal "cryptojacking" operation. Parks was accused of defrauding two prominent cloud computing service providers out of over $3.5 million worth of resources to mine cryptocurrency valued at nearly $1 million. The case was heard by United States Magistrate Judge Cheryl L. Pollak, and Parks could face up to 20 years in prison upon sentencing.
The announcement came from Breon Peace, United States Attorney for the Eastern District of New York, along with James E. Dennehy from the FBI's New York Field Office and Jessica S. Tisch from the NYPD.
Breon Peace remarked on the case: “Through fraud and deceit, Parks acquired powerful computing resources worth millions of dollars to fuel his illegal cryptomining operation,” adding that this plea highlights their dedication to prosecuting complex cyber schemes.
NYPD Commissioner Tisch stated: “This guilty plea serves as a reminder to potential cybercriminals that experienced law enforcement officers are well-equipped to detect, investigate, and put an end to financial exploitation schemes carried out in the digital world.”
The practice known as "cryptojacking" involves unauthorized use or hijacking of another party’s resources for mining cryptocurrency. According to court documents presented during the plea hearing, between January 2021 and August 2021, Parks used various aliases and corporate affiliations like "MultiMillionaire LLC" and "CP3O LLC" to gain access to substantial computing power without payment. He used these resources fraudulently obtained through deception for mining cryptocurrencies such as Ether, Litecoin, and Monero.
Parks also engaged in converting and laundering his cryptocurrency proceeds via exchanges, NFT marketplaces, online payment providers, and traditional banks while structuring transactions to evade federal reporting requirements. His fraudulent gains funded luxury purchases including a Mercedes Benz car.
Assistant U.S. Attorneys Andrew Reich and Artie McConnell are managing the prosecution under the Office’s National Security and Cybercrime Section.
Charles O. Parks III is identified as a 45-year-old resident of Omaha, Nebraska.
