Crypto Influencer Sentenced to 1 Year Behind Bars for $3.5M Mining Scam

Another day, another crypto scandal—this time with jail time attached.

Breaking: A high-profile crypto influencer just got slapped with a 1-year prison sentence for orchestrating a $3.5 million mining scam. The scheme promised sky-high returns but delivered little more than handcuffs.

The Takeaway: Even in the Wild West of crypto, regulators are starting to lock the saloon doors. Whether this slows the tide of grifters or just sends them offshore remains to be seen—after all, $3.5M is barely a rounding error in traditional finance fraud.

How the Scheme Worked?

Parks told one provider he was building an online training company for media and technology courses serving 10,000 students. The DOJ also said, “In reality, there was no training company, and there were no students.” Resources were instead used for crypto mining. When providers raised concerns, Parks deflected questions and continued exploiting the systems. Moreover, he also promoted a “MultiMillionaire Mentality” online and offered coaching subscriptions payable in his own token. 

“Charles Parks manipulated technology, stole millions in computer resources, and illegally mined cryptocurrency — and today’s sentencing holds him fully accountable,” said NYPD commissioner Jessica S. Tisch.

Prosecutors said Parks laundered the mined crypto through exchanges, an NFT marketplace, payment processors, and banks. He used the funds to buy a Mercedes-Benz and jewelry, as well as sponsor first-class travel and accommodations. The April 2024 indictment revealed Parks had accounts with cloud companies in Seattle and Redmond, both defrauded.

Sentencing and Wider Impact

As part of Parks’ one year and one day in prison sentence, he must forfeit $500,000 and his Mercedes-Benz. Additionally, its restitution will be determined later.

The Parks case has highlighted the risks in crypto. CertiK, a blockchain security firm, says scams, hacks, and wallet breaches caused over $2.2 billion in losses in the first half of 2025. This case shows how authorities are actively holding people accountable for using crypto and technology to defraud users and firms.

Also Read: North Korea Linked to £17m Crypto Heist That Collapsed UK Firm