A Nebraska man is looking at 30 years in prison in connection with a major cryptojacking scheme.
Based on an indictment filed on April 15 by the US Attorney’s Office in Brooklyn, Charles O. Parks III, who goes by “CP3O,” is accused of deceiving two major cloud services companies.
Cryptojacking refers to an unauthorized takeover of a computer system where cybercriminals covertly mine cryptocurrency using the victim’s resources, such as processing power or electricity. This malicious activity can occur in various ways and often goes unnoticed by the victim until significant damage has been done.
It is reported that Parks is accused of taking advantage of $3.5 in computational resources provided by service suppliers. Subsequently, these resources were used to mine a substantial amount of cryptocurrencies valued at approximately $970,000. The comprehensive list of allegations encompasses charges for “wire fraud, money laundering,” and participating in “unlawful monetary transactions” related to this scheme.
On April 13, 2024, the suspect was captured. The investigation is being spearheaded by the US Attorney’s Office for the Eastern District of New York, the Federal Bureau of Investigation (FBI), and the New York City Police Department (NYPD). Park will make an appearance in court in Omaha on April 16.
“Criminals are getting better at using digital technologies to deceive and hide, leading to substantial financial losses for their victims. The FBI remains determined to track down those who invent new methods to break the law,” stated FBI Assistant Director-in-Charge Smith.
From January 2021 to August 2021, Park actively operated his scheme. In this timeframe, he established numerous accounts with cloud service providers (the accusing parties). He used fictitious business names like “MultiMillionaire LLC” and “CP3O LLC” for this purpose. Subsequently, he utilized these accounts to obtain substantial computing power and data storage without incurring any charges.
Additionally, Park successfully deceived the plaintiffs into granting him exclusive privileges to their offerings. Utilizing these benefits, he extracted various cryptocurrencies such as Ether (ETH), Litecoin (LTC), and Monero (XMR). He faced allegations for dodging queries regarding suspicious data handling and postponing payments.
Prosecutors pointed out that Park moved his ill-gotten gains through various cryptocurrency platforms, an NFT marketplace, and conventional banking systems. The transactions were carefully arranged to stay below the $10,000 federal reporting limit.
He employed ill-gotten money for his own advantages, such as purchasing a Mercedes Benz luxury car, acquiring jewelry, and covering first-class hotel and travel bills. If proven guilty, he may be sentenced to a maximum of 20 years in prison for wire fraud and an additional 10 years for illegal transaction offenses.
In early 2024, a 29-year-old individual was apprehended by the Ukrainian National Police for covertly mining cryptocurrencies on approximately one million virtual servers without authorization. The authorities reported that this illicit activity generated over $2 million in digital currency earnings.
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2024-04-16 13:59