A former Microsoft worker was sentenced to nine years in prison for a scheme to steal $10 million in digital currency.
Volodymyr Kvashuk (26), a former Microsoft software engineer, was sentenced this week to nine years in prison for a scheme to steal $10 million in digital currency.
Kvashuk is a Ukrainian citizen living in Renton, Washngton, was responsible for helping test Microsoft’s online retail sales platform.
The man was involved in the testing of Microsoft’s online retail sales platform and abused testing access to steal “currency stored value” (CSV) such as digital gift cards. Kvashuk used email accounts associated with other Microsoft employees for his fraudulent activity.
“A former Microsoft software engineer was sentenced today in U.S. District Court in Seattle to nine years in prison for 18 federal felonies related to his scheme to defraud Microsoft of more than $10 million, announced U.S. Attorney Brian T. Moran.” reads the press release published by DoJ.
“In February 2020, KVASHUK was convicted by a jury of five counts of wire fraud, six counts of money laundering, two counts of aggravated identity theft, two counts of filing false tax returns, and one count each of mail fraud, access device fraud, and access to a protected computer in furtherance of fraud.”
Stolen digital currency value could be redeemed to obtain Microsoft products or gaming subscriptions, then the former Microsoft worker has resold them online.
Microsoft fired the man in June 2018 after it discovered the fraudulent scheme.
U.S. District Judge James Robart sentenced the Ukrainian man and ordered him to pay more than $8.3 million in restitution. According to the DoJ, Kvashuk could be deported following his prison term.
“Stealing from your employer is bad enough, but stealing and making it appear that your colleagues are to blame widens the damage beyond dollars and cents,” Seattle U.S. Attorney Brian Moran said in a news release.
Kvashuk used part of the earnings of his activity to buy a Tesla and a $1.7 million lakefront home.