U.S. prosecutors have charged a man with defrauding two cloud service providers of $3.5 million for cryptocurrency mining, including Ethereum

ChainCatcher news, the Brooklyn U.S. Attorney's Office stated on April 15 that Charles O. Parks III, also known as "CP3O," defrauded two cloud computing providers out of $3.5 million and mined cryptocurrency worth $970,000, including Ethereum, Litecoin, and Monero. He used the resources of the two companies for mining without paying.

The indictment alleges that he designed payments to avoid submitting reports required under federal law for transfers over $10,000. Prosecutors found that Parks repeatedly transferred $9,999 and smaller amounts from cryptocurrency exchanges to bank accounts; Parks used the proceeds to purchase luxury items, including a luxury Mercedes-Benz, jewelry, and "first-class hotel and travel expenses." He faces a maximum of 50 years in combined criminal sentences and is scheduled to appear in federal court in Omaha on April 16.