Federal authorities allege that a cryptojacker deceived cloud companies, resulting in a fraudulent acquisition of $3.5M for crypto mining.

A man has been charged by United States prosecutors with wire fraud and money laundering for allegedly carrying out a large-scale illegal “cryptojacking” operation. The accused, Charles O. Parks III, also known as “CP3O,” is facing up to 50 years in prison for defrauding two cloud computing providers of $3.5 million to mine $970,000 worth of cryptocurrencies, including Ether (ETH), Litecoin (LTC), and Monero (XMR), using their resources without permission. Parks was arrested in Nebraska on April 13 and is scheduled to appear before a federal court in Omaha on April 16. The indictment states that Parks created multiple accounts with two companies, one in Seattle and the other in Redmond, using fake names and email addresses. He deceived the services into granting him elevated privileges and benefits, and when questioned about suspicious data usage and unpaid balances, he deflected the inquiries. The indictment also alleges that Parks laundered some of the mined crypto through a decentralized cryptocurrency exchange and used various methods to avoid transaction reporting requirements. Prosecutors claim that Parks used the proceeds for extravagant purchases, including a luxury car, jewelry, and high-end travel expenses. The U.S. Attorney’s Office in Brooklyn has stated that it will continue to prioritize the prosecution of criminals who use advanced technology for fraudulent activities.