Ex-Microsoft Engineer Gets Nine Years for $10m Digital Theft

  • An ex-Microsoft engineer has been sentenced to 9 several years guiding bars soon after stealing $10 million from his previous employer.

    Ukrainian citizen, Volodymyr Kvashuk, 26, was convicted by a jury of 5 counts of wire fraud, six counts of money laundering, two counts of aggravated identity theft, two counts of submitting untrue tax returns, and just one count just about every of mail fraud, accessibility system fraud, and obtain to a guarded computer in furtherance of fraud. He was found responsible of the rates in February.

    The Renton, Washington, resident was a contractor and then entire-time staff at Microsoft from August 2016 to June 2018. All through that time, his work in screening the tech giant’s retail income platform gave him entry to electronic present cards and other currency saved price (CSV) objects, which he then sold on the internet.

    He commenced off with smaller amounts of up to $12,000 employing his very own account, and then hijacked those of his co-workers as the worth of stolen products escalated into the millions of dollars, according to the Section of Justice (DoJ).

    Kvashuk is also said to have utilized a Bitcoin “mixing” support to consider and cover the source of the resources place into his financial institution account.

    In just seven months, he apparently transferred $2.8 million in electronic currency to his financial institution and discounts accounts — in advance of filing fake tax returns to say that the cash experienced been supplied to him by a relative.

    Kvashuk also had plenty of income to purchase a $1.6 million lakefront dwelling and a $160,000 Tesla.

    “Kvashuk’s prison acts of thieving from Microsoft, and subsequent submitting untrue tax returns, is the nation’s very first Bitcoin situation that has a tax component to it,” explained IRS Prison Investigation (IRS-CI) distinctive agent in demand, Ryan Korner.

    “Simply place, today’s sentencing proves you can not steal income through the internet and believe that Bitcoin is going to conceal your legal actions. Our advanced crew of cybercrimes authorities with the assistance of IRS-CI’s Cyber Crimes Unit will hunt you down and keep you accountable for your wrongdoings.”

    Along with the prolonged jail time period, Kvashuk is currently being purchased to pay out in excess of $8.3 million in restitution.