United States authorities have pressed charges against an individual for wire fraud and money laundering, asserting that he deceived two cloud service providers to orchestrate a substantial illicit crypto mining scheme. The accused, identified as Charles O. Parks III, also known as “CP3O,” could potentially be sentenced to up to 50 years in prison for his actions.

According to the Brooklyn U.S. Attorney’s Office, Parks purportedly duped the two companies out of $3.5 million to generate $970,000 in various cryptocurrencies like Ether (ETH), Litecoin (LTC), and Monero (XMR) by exploiting their resources without authorization. This exploitation, known as cryptojacking, involves utilizing computing power or electricity surreptitiously to mine cryptocurrencies.

The arrest of Parks in Nebraska on April 13 led to charges of wire fraud, money laundering, and involvement in illicit financial transactions. Facing a maximum cumulative sentence of 50 years, Parks is scheduled to appear before an Omaha federal court on April 16 for further proceedings.

The indictment alleges that Parks established multiple accounts with a subsidiary of “Company 1,” a Seattle-based cloud computing and consumer electronics firm, and “Company 2,” a Redmond-based company specializing in personal computers and related services. Between January and August 2021, Parks purportedly employed various fictitious identities, corporate affiliations, and email addresses, including those associated with his registered companies, MultiMillionaire LLC and CP3O LLC, to create accounts with the firms.

By deceiving the services into granting him enhanced privileges and benefits, such as increased levels of cloud computing services and deferred billing arrangements, Parks managed to avoid detection until inquiries were made regarding unusual data consumption and outstanding subscription balances.

The indictment further claims that Parks laundered a portion of the illicitly mined cryptocurrencies through “Cryptocurrency Exchange 1,” a decentralized entity, and utilized other channels like a payments provider, bank accounts, and a New York City-based nonfungible token (NFT) marketplace. To circumvent federal reporting requirements for transactions exceeding $10,000, Parks allegedly structured his payments to stay below this threshold, frequently transferring amounts just under $10,000 from the crypto exchange to a bank account.

Prosecutors assert that Parks utilized the proceeds for extravagant expenditures, including acquiring a luxury Mercedes Benz, jewelry, and covering high-end hotel stays and travel expenses. Brooklyn U.S. Attorney Breon Peace emphasized the office's commitment to prosecuting individuals who exploit advanced technologies for fraudulent activities, underscoring the importance of combating fraud and deception in the digital age.