A man from Nebraska, Charles O. Parks III, pleaded guilty to running a large cryptojacking operation. He was arrested in April for not paying a $3.5 million bill for cloud computing services, which he used to mine about $970,000 worth of cryptocurrency. Parks, known as “CP3O,” created fake accounts under different names to access powerful computers without paying. He mined popular cryptocurrencies like Ether, Litecoin, and Monero while evading the cloud providers’ suspicions. Parks laundered his earnings through various exchanges and used the money for luxury purchases, like a Mercedes Benz and expensive travel. He faces up to 20 years in prison after his guilty plea.
A Nebraska man, Charles O. Parks III, also known as “CP3O,” recently pleaded guilty to running a large-scale cryptojacking operation. His guilty plea comes after he was arrested in April for allegedly failing to pay a hefty bill of $3.5 million for rented cloud computing power, which he used to mine around $970,000 worth of cryptocurrency.
The U.S. Justice Department did not specify the names of the cloud service providers involved, but documents indicate that one is based in Seattle and the other in Redmond, Washington, locations associated with major tech companies like Amazon and Microsoft.
From January to August 2021, Parks used various false identities and companies he controlled, such as “MultiMillionaire LLC” and “CP3O LLC,” to create multiple accounts with these cloud providers. This scheme allowed him to gain access to significant computing resources without making payments, tricking the companies into providing him premium services while he evaded their attempts to address suspicious usage patterns.
In total, Parks operated tens of thousands of virtual machines to mine cryptocurrencies like Ether (ETH), Litecoin (LTC), and Monero (XMR). He utilized management tools and mining software to enhance his operations and mask his activities.
To cover his tracks, Parks laundered the cryptocurrency earnings through various exchanges, a New York City NFT marketplace, and multiple bank accounts. After converting the digital assets into cash, he indulged in lavish expenses, including first-class travel, a luxury Mercedes Benz, and expensive jewelry.
U.S. Attorney Peace emphasized the seriousness of Parks’ actions, stating, “Through fraud and deceit, Parks acquired powerful computing resources worth millions of dollars to fuel his illegal cryptomining operation.” If sentenced, Parks could face up to 20 years in prison.
This case serves as a reminder of the risks associated with cryptocurrency and the ongoing efforts to combat cyber fraud.
Tags: Cryptojacking, Cryptocurrency Fraud, Ether, Litecoin, Monero, Cloud Computing, Nebraska News, Cyber Crime.
What is the Nebraska Man case about?
A man from Nebraska has admitted to illegally using other people’s computers to mine cryptocurrency. This is called cryptojacking, and it can slow down computers without the owners knowing.
Why did he plead guilty?
He pleaded guilty because he was involved in a scheme that caused a lot of trouble for many computer users. By mining cryptocurrency without permission, he broke the law and faced serious consequences.
What is cryptojacking?
Cryptojacking is when someone uses another person’s computer to mine cryptocurrency without their consent. It can cause computers to run slowly and may lead to other problems with the device.
What are the possible penalties for this crime?
The Nebraska Man could face fines and possibly jail time for his actions. Pleading guilty often means he may get a lighter sentence, but he is still likely to face some punishment.
How can people protect themselves from cryptojacking?
To stay safe, people should keep their computer software updated, use good antivirus programs, and be cautious about clicking on unknown links or downloads. This helps prevent unauthorized use of their computers.
