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American Charged in Alleged Cryptojacking Scheme

source-logo  coinspress.com 17 April 2024 04:14, UTC

Nebraska resident Charles O. Parks III has been accused of wire fraud, money laundering, and operating an unlicensed money-transmitting business in connection with an alleged 'cryptojacking' scheme.

The scheme reportedly involved unlawfully using cloud-based computing services to mine cryptocurrencies worth approximately $1 million. Parks is accused of exploiting cloud providers’ systems to avoid billing and extend the duration of the fraud.

According to the United States Department of Justice, Parks managed to siphon off over $3.5 million worth of computing services from two major cloud providers as part of his schemes.

He allegedly registered multiple accounts under aliases such as “MultiMillionaire LLC” and “CP3O LLC” to access substantial computing power without payment.

These resources were purportedly used to mine digital currencies like Ethereum (ETH), Litecoin (LTC), and Monero (XMR).

Parks was taken into custody on April 13, 2024, and is set to appear in court in Omaha on April 16. If convicted on all charges, he could face up to 10 years in prison for illegal monetary transactions and 20 years for each count of money laundering and wire fraud.

The case highlights concerns surrounding crypto fraud and underscores the importance of collaboration between law enforcement agencies in addressing cybercrime.