Man Accused of Defrauding Cloud Providers for Crypto Mining in Multi-Million Dollar Scheme

A man named Charles O. Parks III, also known as “CP3O,” stands accused by the Brooklyn U.S. Attorney’s Office of defrauding two cloud computing providers out of $3.5 million to mine cryptocurrencies, including Ethereum, Litecoin, and Monero. The alleged fraud, detailed in an indictment on April 15, 2024, reports that Parks mined cryptocurrencies worth $970,000 using the resources of the two companies without payment, according to Foresightnews.

The indictment outlines that Parks strategically structured payments to skirt federal laws requiring reporting of transactions over $10,000. Prosecutors found that Parks made multiple transfers from cryptocurrency exchanges to bank accounts in amounts of $9,999 and less. The funds obtained were allegedly spent on luxury items, including a high-end Mercedes-Benz, jewelry, and expenses for “first-class hotels and travel.”

Facing a potential combined criminal sentence of up to 50 years, Parks is scheduled to appear in federal court in Omaha on April 16.