Cryptojacker from cloud companies to my crypto 3.5M
U.S. prosecutors charged a man who defrauded two cloud computing providers to run a “massive illegal ‘cryptojacking' operation” — a fraud and money laundering charge that carries the perpetrator up to 50 years in prison.
The US Attorney's Office in Brooklyn said on April 15 that Charles O. Parks III, also known as “CP3O”, defrauded two companies of $3.5 million and spent $970,000 in cryptocurrencies including Ether (ETH), Litecoin (LTC) and Monero (XMR). Use the resources of the two companies without paying.
Cryptojacking is when an entity uses resources such as computer power or electricity without permission to mine cryptocurrency. Malware types can inject mining software that drains small amounts of resources from a network of computers.
Parks was arrested in Nebraska on April 13 and charged with wire fraud, money laundering and money laundering.
He faces a total of 50 years in prison and is scheduled to appear in Omaha federal court on April 16.
The indictment alleges that Parkis created multiple accounts with “Company 1,” a “cloud computing and consumer electronics company headquartered in Seattle, Washington,” and “Company 2.” , Washington.
Between January and August 2021, Parks allegedly used several false “names, corporate affiliations and email addresses” from registered companies — including Multimillion LLC and CP3O LLC — to create accounts at the companies.
He then “deceived and defrauded” the services by “approving superior privileges and benefits,” including superior cloud computing services and deferred billing facilities, the suit alleges.
Parks pointed out that the providers began to inquire about “questionable data usage and mounting unpaid subscription accounts.”
According to the indictment, Parks “bills itself as a ‘decentralized company, with no headquarters'” through “Cryptocurrency Exchange 1” for some of its mining.
Related: IRS investigation chief expects big growth in crypto tax fraud this year
Other funds are said to have moved through payment providers, bank accounts and the New York City-headquartered non-financial token (NFT) marketplace.
He structured the payments to avoid the $10,000 minimum transaction reporting requirements under federal law, the lawsuit said. Prosecutors said they found several instances in which Parkes was seen moving $9,999 and a smaller amount from the cryptocurrency exchange to a bank account.
Prosecutors said Parks used the proceeds for “extraordinary purchases,” including a luxury Mercedes Benz, jewelry and “first-class hotel and travel expenses.”
“This office will continue to prioritize prosecuting criminal actors who use new, sophisticated technology in old fraud and fraud schemes,” Brooklyn U.S. Attorney Brian Peace said in a statement.
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