Indictment and Charges
A Nebraska man has been indicted by New York authorities for allegedly running a $3.5 million crypto scheme. If found guilty, he could face up to 30 years in prison.
The man, Charles Parks III, is accused of fraud, money laundering, and unlawful monetary transactions. He allegedly stole computing resources from two cloud providers, costing them over $3.5 million.
Cryptojacking Operation
Cryptojacking is a cyberattack where hackers hijack others’ devices to mine cryptocurrencies without their consent. Parks allegedly hijacked two cloud providers, stealing millions of dollars worth of computing power.
He used this power to mine $1 million worth of cryptocurrencies, including Ether, Litecoin, and Monero. He registered numerous accounts with fake names and email addresses to gain access to the providers’ systems.
Money Laundering and Extravagant Purchases
Parks allegedly laundered the stolen money through crypto exchanges, NFT marketplaces, and traditional bank accounts. He also structured transactions to avoid reporting requirements.
He used the money to purchase luxury cars, jewelry, and first-class travel accommodations.
Investigation and Arrest
The investigation involved collaboration between the FBI, NYPD, and New York authorities. Parks was arrested in Nebraska and is scheduled to appear in court in Omaha.
The arrest highlights the collaboration between law enforcement and the private sector to combat cybercrime.
