The US announced the arrest and prosecution of crypto miner Charles Parks III, known as “CP3O,” for allegedly renting a large number of cloud servers to conduct cryptojacking and then failing to pay the bills.
See also: Lucifer DDoS malware attacks Apache servers
The DOJ explains that the defendant created a unique system that used $3.5 million worth of cloud computing resources to mine $970,000 worth of cryptocurrencies at the expense of two cloud service providers.
The crypto miner allegedly created fake corporate identities such as “MultiMillionaire LLC” and “CP30 LLC” to open multiple accounts with cloud service providers, gaining access to significant computing power to carry out cryptojacking.
Although the Justice Department did not disclose which cloud providers are involved, it does specify that one is located in Seattle, Washington, and the other in Redmond, Washington, the locations of Amazon and Microsoft.
The DOJ says he then tricked providers into increasing his privileges and gaining access to servers equipped with powerful graphics cards, which he used to mine Ether (ETH), Litecoin (LTC), and Monero (XMR).
The mined amounts were then laundered by purchasing non-fungible tokens (NFTs), converting and transferring them to various cryptocurrency exchanges, or transferring them through online payment platforms and traditional bank accounts.
See also: Who is the new AMBERSQUID cryptojacking campaign targeting?
The mounting cloud service bills went unpaid, while the crypto miner allegedly used the cryptojacking proceeds that he had converted into USD to finance a lavish lifestyle that included travel and purchases of luxury goods and cars.
The DOJ announcement says Parks was arrested on April 13, 2024, in Nebraska, and his first hearing in federal court in Omaha is scheduled for tomorrow.
The indictment includes charges of fraud, money laundering and participation in illegal financial transactions, which carry a maximum sentence of 30 years in prison.
Cloud service providers can take several steps to minimize the risk of cryptojacking, including enforcing stricter identity verification procedures, setting lower usage limits for new accounts, and implementing better anomaly detection systems that would minimize losses.
See also: Dero coin cryptojacking targeting Kubernetes containers?
Cryptojacking is a form of cybercrime that involves the illegal use of another person's computing resources by a crypto miner to mine cryptocurrencies. Attackers often use a number of techniques to install cryptocurrency code on computers , including mobile devices. This can be done by exploiting software vulnerabilities, using phishing techniques, or installing the code through online advertisements .When Cryptojacking is active, computers and other devices can experience significant slowdowns, increased energy usage, and hardware wear and tear due to excessive use. Preventing Cryptojacking requires keeping software up to date, using security tools, and educating users to recognize and avoid phishing attacks.
🔒 Protect your privacy with Proton VPN
Swiss VPN from the creators of Proton Mail — strict no-logs policy, strong encryption, and built-in NetShield that blocks ads, trackers, & malware.
- ✔ No-logs, based in Switzerland (except 14-Eyes)
- ✔ NetShield: blocks ads, trackers & malicious domains
- ✔ Covers all devices — free version available
The link is an affiliate link — SecNews may receive a commission at no additional cost to you. It does not affect the independence of our article writing.
Source: bleepingcomputer
