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    Nebraska Resident Charged in $3.5M Cryptojacking Scheme

    Nebraska resident Charles O. Parks III faces charges of wire fraud, money laundering, and operating an unlicensed money-transmitting business in connection with a sophisticated cryptojacking scheme worth $3.5 million. If convicted, he could face up to 50 years in prison.

    • Charles O. Parks III faces charges of wire fraud, money laundering, and operating an unlicensed money-transmitting business.
    • Parks allegedly conducted a cryptojacking scheme, illegally using cloud-based computing services to mine cryptocurrencies worth approximately $1 million.
    • He purportedly obtained computing services from major cloud providers by registering numerous accounts under false identities, evading payment.
    • If convicted on all charges, Parks could face up to 50 years in prison.

    Charles O. Parks III stands accused of orchestrating a Cryptojacking Scheme involving wire fraud, money laundering, and the operation of an unlicensed money-transmitting business. The indictment asserts that Parks exploited cloud-based computing services to conduct illegal cryptocurrency mining, allegedly worth $1 million. By registering multiple accounts under false names such as “MultiMillionaire LLC” and “CP3O LLC,” Parks purportedly accessed substantial computing power without remitting payment. This capacity was allegedly utilized to mine various digital currencies, including Ether (ETH), Litecoin (LTC), and Monero (XMR).

    Parks allegedly manipulated the cloud providers’ systems to secure elevated service levels and defer billing, thereby delaying the discovery of his fraudulent activities. Queries from providers regarding unusual data usage and outstanding fees were reportedly circumvented by Parks, prolonging the scheme. The illicit proceeds from the mining operations were purportedly laundered through crypto-exchanges, non-fungible token (NFT) markets, an online payment provider, and conventional bank accounts. This laundering endeavor aimed to obscure the origin of the funds and circumvent federal transaction reporting requirements. Parks purportedly intended to utilize the laundered funds for extravagant expenditures, including luxury vehicles, jewelry, and upscale travel accommodations.

    Charles O. Parks III was apprehended on April 13, 2024, and is set to make his initial court appearance in Omaha on April 16. If convicted on all charges, he could potentially face up to 50 years in prison. The case is being prosecuted by the National Security and Cybercrime Section of the U.S. Attorney’s Office, underscoring the gravity of cyber fraud. Assistant U.S. Attorneys Andrew Reich and Artie McConnell lead the prosecution efforts. The collaborative efforts of the FBI’s New York Cyber Crimes Task Force and various federal, state, and local agencies highlight the increasing importance of multi-agency cooperation in combatting cybercrime.

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