Crypto Influencer Sentenced to 1 Year in Prison for $3.5 Million Cloud Mining Scam

A self-styled crypto influencer has been sentenced to one year and one day in prison for orchestrating a large-scale cryptojacking scheme that defrauded major cloud computing providers of more than $3.5 million in resources.

The Department of Justice (DOJ) said on Friday that Charles O. Parks III, known online as “CP3O,” used fake corporate identities such as “MultiMillionaire LLC” and “CP3O LLC” to trick cloud service providers into granting him elevated access.

Between January and August 2021, he secretly mined nearly $1 million worth of Ether (ETH), Litecoin (LTC), and Monero (XMR) using the stolen computing power.

Parks pleaded guilty to wire fraud in December. Initially, he also faced charges of money laundering and unlawful transactions that carried a maximum sentence of up to 50 years.

“Charles Parks manipulated technology, stole millions in computer resources, and illegally mined cryptocurrency — and today’s sentencing holds him fully accountable,” said New York City Police Department commissioner Jessica S. Tisch.

According to prosecutors, Parks told one cloud provider he was building an online training company focused on media, technology, and business strategy, claiming it would serve 10,000 students.

“In reality, there was no training company, and there were no students,” the DOJ said. Instead, the resources were directed toward crypto mining operations.

When providers raised concerns about unusual usage patterns and unpaid balances, Parks deflected questions while continuing to exploit the systems.

Prosecutors said Parks laundered the mined crypto through exchanges, an NFT marketplace, payment processors, and banks, converting it into cash to fund a luxury lifestyle. Purchases included a Mercedes-Benz, jewelry, and first-class travel.

An April 2024 indictment revealed that Parks had accounts with a subsidiary of a Seattle-based cloud and electronics company and a Redmond-based computing firm, both of which were defrauded.

As part of his sentence, Parks was ordered to forfeit $500,000 and his Mercedes-Benz, with restitution to be determined later.

Prosecutors said Parks attempted to leverage his illicit gains to build credibility as a crypto influencer.

He posted content online promoting a “MultiMillionaire Mentality” and ran a coaching platform offering self-improvement subscriptions for $10 per month, with one-on-one consulting for $150 — payable in his own token.

Investor Loses $3M in Crypto Phishing Scam

As reported, a cryptocurrency investor has fallen victim to a phishing scam, losing $3.05 million in Tether (USDT) after unknowingly signing a malicious blockchain transaction.

The loss, flagged by blockchain analytics platform Lookonchain on Wednesday, underscores the rising threat of phishing attacks targeting digital asset holders.

The attacker exploited a common habit among crypto users: validating only the first and last few characters of a wallet address while ignoring the middle.

Crypto investors lost over $2.2 billion to hacks, scams, and breaches in the first half of 2025, driven largely by wallet compromises and phishing attacks, according to CertiK’s latest security report.

Wallet breaches alone caused $1.7 billion in losses across just 34 incidents, while phishing scams accounted for over $410 million across 132 attacks.