Alleged Cryptojacking Scheme Consumed $3.5M of Stolen Computing to Make Just $1M
Freeman writes:
Federal prosecutors indicted a Nebraska man on charges he perpetrated a cryptojacking scheme that defrauded two cloud providers-one based in Seattle and the other in Redmond, Washington-out of $3.5 million.
The indictment, filed in US District Court for the Eastern District of New York and unsealed on Monday, charges Charles O. Parks III-45 of Omaha, Nebraska-with wire fraud, money laundering, and engaging in unlawful monetary transactions in connection with the scheme. Parks has yet to enter a plea and is scheduled to make an initial appearance in federal court in Omaha on Tuesday. Parks was arrested last Friday.
Prosecutors allege that Parks defrauded "two well-known providers of cloud computing services" of more than $3.5 million in computing resources to mine cryptocurrency.
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Prosecutors didn't say precisely how Parks was able to trick the providers into giving him elevated services, deferring unpaid payments, or failing to discover the allegedly fraudulent behavior. They also didn't identify either of the cloud providers by name. Based on the details, however, they are almost certainly Amazon Web Services and Microsoft Azure.
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