Ex-Microsoft Engineer Used Bitcoin to Assist Embezzle Hundreds of thousands From Tech Big

A U.S. courtroom has discovered a former Microsoft software program engineer responsible of embezzling hundreds of thousands of {dollars} and turning it into bitcoin to fund a lifetime of luxurious.

Volodymyr Kvashuk, 25, was convicted Tuesday by the U.S. District Court docket in Seattle of 18 separate federal felonies that defrauded Microsoft out of a complete of $10 million, in accordance with a statement from the Division of Justice.

A Ukrainian citizen primarily based within the city of Renton, Washington, Kvashuk labored full-time for Microsoft from 2016 to 2018. Concerned in creating and testing the corporate’s on-line retail gross sales platform, he used his account entry to steal what’s described as “forex saved worth” together with digital reward playing cards that he subsequently re-sold on the web over a seven-month interval.

Kvashuk constructed a lavish life-style utilizing the embezzled funds, buying a $160,000 Tesla and a lakefront house price an estimated $1.6 million. After uncovering the scheme, Microsoft confronted Kvashuk and fired him in June 2018

Kvashuk, who claimed at trial be engaged on a particular challenge for the corporate, stole quantities totaling roughly $12,000 beneath his personal account earlier than utilizing take a look at e-mail accounts related to fellow Microsoft staff to start embezzling hundreds of thousands of {dollars} from the corporate. Altering funds into bitcoin, he would use a mixing service to obfuscate its origins earlier than transferring the ill-gotten positive aspects into his checking account.

In complete, bitcoin proceeds of over $2.eight million have been transferred into his checking account. In tax returns filed throughout this era, Kvashuk claimed the funds have been a present from a relative.

The trial, which lasted 5 days, discovered the engineer responsible on 5 counts of wire fraud, six counts of cash laundering, two counts of aggravated id theft, two counts of submitting false tax returns, and one depend every of mail fraud, financial institution card fraud and utilizing an organization pc for illicit functions.

Talking after the trial, particular agent Ryan Korner from the IRS’ legal investigations division highlighted that Kvashuk’s conviction was a results of work carried out by the IRS.

“Criminals who assume they will keep away from detection by utilizing cryptocurrency and laundering via mixers are placed on discover … you can be caught and you can be held accountable,” he mentioned.

Kvashuk faces as a lot as 20 years in jail when he’s sentenced by the presiding decide on June 1.