TLDR

Charles Parks sentenced to one year for defrauding $3.5M in cloud resources.

Parks used cloud services to illegally mine crypto worth $1M in Ether, Litecoin, and Monero.

Fraudster laundered stolen crypto funds to purchase luxury goods including a Mercedes-Benz.

Parks created fake companies to deceive cloud service providers for computing power.

Charles O. Parks III, known online as “CP3O,” has been sentenced to one year and one day in prison for defrauding two major cloud computing providers. The Brooklyn federal court handed down the sentence after Parks admitted to using the stolen computing resources to mine cryptocurrency, including Ether, Litecoin, and Monero, worth approximately $1 million.

The fraud, which occurred between January and August 2021, involved Parks gaining access to cloud computing services through fake corporate identities. His actions are considered part of a large-scale cryptojacking scheme, and he was sentenced under wire fraud charges, having pleaded guilty in December 2024.

How Charles O. Parks Executed the Crypto Fraud Scheme

Charles O. Parks exploited the resources of two unnamed cloud service providers by misrepresenting his intentions. He claimed he needed the computing power to run an online business aimed at training thousands of students in media, tech, and business strategy.

However, investigators found that no such company existed, and the resources were instead used to mine cryptocurrencies without permission.

In his dealings with the cloud providers, Parks deflected concerns about “questionable data usage” and unpaid subscription balances, thereby avoiding detection for months. His manipulation of cloud services as a result led to millions of dollars worth of resources being misused for his personal gain.

Laundering Stolen Crypto to Fund Luxury Purchases

After successfully mining the cryptocurrencies, Charles O. Parks laundered the proceeds through a series of crypto exchanges, online payment processors, and a non-fungible token (NFT) marketplace.

The funds were converted into cash, which Parks used to purchase luxury items, including a Mercedes-Benz, high-end jewelry, and first-class travel tickets.

Prosecutors detailed that Parks made efforts to create an online persona as a successful crypto influencer. By promoting a self-help wealth coaching program and sharing his so-called “MultiMillionaire Mentality” online, he built credibility in the crypto community. However, as highlighted by prosecutors, Parks was not the innovative entrepreneur he portrayed himself to be; instead, he was a fraudster.

Legal Consequences and Future Restitution

As part of the sentence, Charles O. Parks has been ordered to forfeit $500,000 in assets, including the Mercedes-Benz. The court has yet to decide on the restitution amounts for the victims of his fraudulent activities. Parks’ bankruptcy and ongoing criminal investigations as a result are expected to further complicate his financial recovery.

In addition to his prison sentence, Parks’ actions have brought attention to the risks associated with cloud services and crypto mining.

Cloud providers, once seen as trusted infrastructure for businesses, can become vulnerable to exploitation in such cryptojacking schemes.

The post Crypto Fraudster Charles Parks Gets 1 Year Jail for $3.5M Cryptojacking appeared first on CoinCentral.

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Filed under: News - @ August 18, 2025 4:26 am