"Crypto Influencer" sentenced to prison for $3.5 million cryptojacking fraud

Charles O. Parks III, also known by the nickname "CP3O", a cryptocurrency influencer, was sentenced to one year in prison for running a large-scale cryptojacking fraud. The case defrauded two major cloud service providers, appropriating over $3.5 million in computing resources to mine nearly $1 million in cryptocurrency. #scam

Method of Fraud

From January to August 2021, Parks created fake companies and accounts to convince cloud service providers to grant him access to powerful computing resources. He lied that he was building a large online education platform, but in reality, he used these resources to mine cryptocurrencies such as $ETH , $LTC , and Monero.

After mining the money, Parks laundered it through exchanges, NFT markets, and traditional banking. He used the illegal funds to purchase luxury items such as jewelry and high-end cars, while building the image of a "crypto influencer" on social media.

Legal Consequences

Parks pleaded guilty to wire fraud and was required to pay a $500,000 fine along with a Mercedes-Benz car purchased with illegal money. This case serves as a reminder that fraudulent behavior in the cryptocurrency space will be dealt with severely, regardless of the perpetrator's reputation or image on social media. #anhbacong