In a Brooklyn federal court, crypto influencer Charles O. Parks III, known online as “CP3O”, was sentenced to one year and one day in prison for orchestrating a large-scale cryptojacking operation. Prosecutors revealed that Parks fraudulently obtained over $3.5 million worth of cloud computing resources from two major providers and used them to mine nearly $1 million in cryptocurrency. The sentence was handed down by U.S. District Judge Eric Komitee. As part of the punishment, Parks must forfeit $500,000 and a Mercedes-Benz purchased with illicit funds, with restitution to be determined later.
The Scheme: An “Educational Platform” as a Cover
On paper, the setup looked flawless. Parks presented his project to cloud providers as an online learning platform, claiming it would “support up to 10,000 students simultaneously.” In reality, there were no students at all — the computing power was directed entirely to crypto mining. This front allowed him to secure higher account limits, delay billing questions, and continue siphoning resources undetected.
Timeline, Tricks, and Tactics
The active phase of the scheme ran from January to August 2021. Parks repeatedly registered dozens of accounts under fake names, domains, and shell companies such as MultiMillionaire LLC and CP3O LLC. He mined Ethereum (ETH), Litecoin (LTC), and Monero (XMR) — popular choices for CPU and GPU mining in cloud environments.
Cashing Out and the “Luxury Lifestyle”
The mined coins were funneled through crypto exchanges, NFT marketplaces, payment processors, and banks, with transactions carefully split to avoid anti-money laundering triggers. Once converted into U.S. dollars, Parks spent his gains on jewelry, luxury hotels and flights, and the Mercedes-Benz now seized by authorities.
From Indictment to Guilty Plea
The indictment was unsealed on April 15, 2024, charging Parks with wire fraud, money laundering, and illegal financial transactions. On December 5, 2024, he pleaded guilty to one count of wire fraud. Court filings estimate that the stolen cloud services exceeded $3.5 million, while the mined cryptocurrency reached nearly $1 million in value.
The “Influencer Mask”
Meanwhile, Parks was busy cultivating his online persona as a successful crypto guru. On social media and YouTube, he flaunted wealth, claimed to have cracked the “secret to fast success,” and lured followers with promises of insider knowledge. The truth was far simpler: his empire was built on stolen cloud resources and deception.
Why This Matters for the Industry
The CP3O case highlights how easily the image of an influencer can be weaponized to disguise fraudulent activity. For cloud providers, it’s a reminder to strengthen client verification. For businesses, it underscores the need to protect accounts and API keys from abuse. And for everyday investors, it’s a warning that a polished online persona doesn’t guarantee legitimate income streams.
Key Facts at a Glance
- Sentence: 1 year and 1 day in federal prison
- Damages: $3.5M in stolen cloud resources
- Mined crypto: nearly $1M
- Method: “Educational platform” cover, fake accounts, boosted cloud limits
- Period: January–August 2021
- Coins mined: ETH, LTC, XMR
- Forfeiture: $500,000 and a Mercedes-Benz
- Guilty plea: December 2024 (wire fraud)
