Ex-Microsoft engineer sentenced to 9-year jail for buying house, car through bitcoin fraud

A former Microsoft engineer was sentenced to nine years in prison for defrauding the company for over 10 million using bitcoin. The engineer allegedly used a mixed bitcoin to hide taxable income and filed fraudulent tax returns. According to reports, he used the stolen money to buy a 1.6 million lake house and a $ 160,000 Tesla vehicle.

Volodymyr Kvashuk, the 26-year-old engineer who worked at Microsoft from 2016 to 2018, fooled the company by using their testing program.

“In February 2020, KVASHUK was convicted by a jury of five counts of telematic fraud, six counts of money laundering, two counts of aggravated identity theft, two counts of false tax returns and one count each of postal fraud, fraud access device and access to a secure computer in support of the fraud. During his hearing, US District Judge James L. Robart said that KVASHUK “had no respect for the law,” the district statement western Washington.

The report claims that Kvashuk was part of Microsoft’s online retail platform and used that test access to steal “stored currency value” (CSV) like digital gift cards. Using the money he received, he purchased a $ 1.6 million lake house and a $ 160,000 Tesla vehicle.

Kvashuk not only used his skills to steal digital gift cards, but he also tried to safeguard himself and blame his colleagues by using their test email accounts.

“Stealing from your employer is bad enough, but stealing and making it seem like your colleagues are to blame increases the damage beyond dollars and cents. This case required sophisticated technology expertise to investigate and prosecute, and I am pleased that our law enforcement partners and the US Attorney’s Office have the expertise to bring such offenders to justice, “said the US Attorney. United States Moran commenting on the case.

Kvashuk tried to defend himself when he was convicted by saying that he had not attempted to defraud the company but was working on a mirror project for the company’s benefit.

“The Volodymyr Kvashuk trial marked a major victory for IRS-CI and the federal cybercrime team. Kvashuk’s criminal acts of theft at Microsoft and subsequent filing of false tax returns, is the nation’s first Bitcoin case to have a tax component. Simply put, today’s conviction proves that you cannot steal money via the Internet and think that Bitcoin will hide your criminal behaviors. Our complex team of cybercrime experts with the assistance of the IRS-CI Cybercrime Unit will hunt you down and hold you accountable for your wrongdoing, “said IRS-CI Special Agent in charge. Ryan L. Korner on the arrest of Kvashuk.

A former Microsoft engineer was sentenced to nine years in prison for defrauding the company for over 10 million using bitcoin.

News Underline:

  • The Microsoft engineer was sentenced to nine years in prison for defrauding the company of over $ 10 million using bitcoin.
  • The engineer allegedly used a mixed bitcoin to hide taxable income and filed fraudulent tax returns.
  • He used the stolen money to buy a $ 1.6 million lake house and a $ 160,000 Tesla vehicle.