Crypto Influencer Sentenced to Prison for Multi-Million Dollar “Cryptojacking” Scheme

Earlier today in federal court in Brooklyn, Charles O. Parks III, also known as “CP3O,” was sentenced by United States District Judge Eric Komitee to one year and one day in prison for operating a large-scale illegal “cryptojacking” operation.  As part of the scheme, Parks defrauded two well-known providers of cloud computing services out of more than $3.5 million worth of computing resources so that he could mine cryptocurrency worth nearly $1 million.  Parks was charged with wire fraud, money laundering, and engaging in unlawful monetary transactions in connection with the scheme and pleaded guilty to wire fraud in December 2024.  As part of the sentence, Parks was ordered to forfeit $500,000 and a Mercedes Benz luxury car purchased with proceeds from the scheme.  The amount of restitution will be determined at a later date.

Joseph Nocella, Jr., United States Attorney for the Eastern District of New York; Christopher G. Raia, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Jessica S. Tisch, Commissioner, New York City Police Department (NYPD) announced the sentence.

“Parks branded himself as an innovator and a thought leader, but in the end he was merely a fraudster whose secret to getting rich quick was lying and stealing,” stated United States Attorney Nocella.  “This Office remains committed to prosecuting criminal actors who take advantage of new, sophisticated technologies to engage in fraud and deceit.” 

Mr. Nocella expressed his appreciation to the FBI’s New York Cyber Crimes Task Force (CCTF).

“Charles Parks III stole more than $3.5 million worth of resources to illegally mine another million in cryptocurrency for personal luxurious purchases,” stated FBI Assistant Director in Charge Raia.  “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.”

“Charles Parks manipulated technology, stole millions in computer resources, and illegally mined cryptocurrency—and today’s sentencing holds him fully accountable for his deceitful actions,” stated NYPD Commissioner Tisch.  “I am grateful to the NYPD and FBI investigators for their dedication, and I commend the prosecutors for their tireless efforts in securing this meaningful prison sentence.  We will continue to work with all of our law enforcement partners to bring to justice anyone who seeks to undermine the integrity of our financial institutions.”

“Cryptojacking,” also referred to as malicious cryptomining, is the unauthorized use or hijacking of another party’s resources, such as electricity, hardware, or computing power, to mine cryptocurrency.  According to court filings and facts presented at today’s sentencing, from in or about January 2021 through August 2021, Parks operated a large-scale “cryptojacking” operation in which he defrauded two well-known providers of cloud computing services out of more than $3.5 million worth of computing resources in order to mine nearly $1 million in cryptocurrency.

Parks created and used a variety of names, corporate affiliations, and email addresses, including emails with domains from corporate entities he operated called “MultiMillionaire LLC” and “CP3O LLC,” to register numerous accounts with the service providers and to gain access to massive amounts of computing processing power and storage that he did not pay for. Parks also deceived the providers into approving heightened privileges and benefits, including elevated levels of computing services, and deflected inquiries from the providers regarding questionable data usage and mounting unpaid subscription balances.  For example, Parks told one provider that he was using the computing resources to build “a global online training company that focuses on media, technology, and business strategy” and that his goal was “to serve 10,000 students simultaneously.” In reality, there was no training company, and there were no students.  Parks instead used the fraudulently obtained computing resources to mine various cryptocurrencies including Ether, Litecoin, and Monero.         

Parks then converted and laundered the cryptocurrency proceeds through cryptocurrency exchanges, a non-fungible token (NFT) marketplace, an online payment provider, and traditional bank accounts, and structured money movements to avoid transaction reporting requirements under federal law.  After converting the ill-gotten cryptocurrency into dollars, Parks used the proceeds to make extravagant purchases, including a Mercedes-Benz, jewelry, and first-class hotel rooms, and to pay travel expenses.

Parks boasted about his profits so as to earn credibility as a crypto influencer.  In a video uploaded to his YouTube channel in September 2022, Parks purported to share tips for achieving what he called a “MultiMillionaire Mentality.” Describing the fraudulent scheme, Parks boasted that, “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.”  He later added that, “…by April, I purchased myself a Mercedes Benz AMG S class coup.”   

The government’s case is being handled by the Office’s National Security and Cybercrime Section.  Assistant United States Attorney Andrew D. Reich is in charge of the prosecution, with the assistance of Paralegal Specialist Wayne Colon.

The Defendant:

CHARLES O. PARKS III (also known as “CP3O”)
Age: 46
Omaha, Nebraska

E.D.N.Y. Docket No. 24-CR-105 (EK)