Hacker Pleads Guilty for Over $3.5 Million in Cloud Computing Services

In a Brooklyn federal court, Charles O. Parks III, also known as “CP3O,” pleaded guilty to wire fraud for orchestrating an illegal cryptojacking scheme that exploited cloud computing services to mine cryptocurrency.

Parks defrauded two prominent cloud providers of over $3.5 million in computing resources to generate nearly $1 million in cryptocurrency.

The guilty plea was entered before United States Magistrate Judge Cheryl L. Pollak. Parks now faces a prison sentence of up to 20 year

Cryptojacking, also known as malicious cryptomining, involves hijacking another party’s computing resources without authorization to mine cryptocurrencies like Ether, Litecoin, and Monero.

Between January and August 2021, Parks created fake identities and corporations such as “MultiMillionaire LLC” and “CP3O LLC” to register multiple accounts with the cloud service providers.

He tricked the companies into granting elevated access, deferred billing, and other privileges, allowing him to amass large-scale computing power at their expense.

Elaborate Fraud and Money Laundering

According to court documents, Parks used elaborate methods to cover his tracks.

He laundered proceeds from the cryptocurrency mining operation through exchanges, an NFT marketplace, online payment platforms, and traditional banks.

Parks structured these transactions to circumvent federal reporting requirements, making it harder to trace the funds.

The illicit gains funded his extravagant lifestyle, including the purchase of a luxury Mercedes Benz, expensive jewelry, and lavish travel accommodations.

Assistant United States Attorneys Andrew Reich and Artie McConnell, from the National Security and Cybercrime Section, are leading the prosecution.

United States Attorney Breon Peace emphasized the government’s commitment to prosecuting complex cybercrimes: “Parks’ guilty plea underscores our dedication to holding criminal actors accountable for sophisticated fraud and cryptocurrency schemes.”

Law Enforcement’s Message to Cybercriminals

Law enforcement agencies, including the FBI’s New York Cyber Crimes Task Force and the NYPD, played crucial roles in investigating the case. FBI Assistant Director James E.

Dennehy and NYPD Commissioner Jessica S. Tisch highlighted the expertise of their teams in detecting and halting cybercrime.

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