Using Bitcoin to wash $ 10 million of dirty money, former Microsoft employee faces 20 years in prison - Photo 1.

Using Bitcoin to wash $ 10 million of dirty money, former Microsoft employee faces 20 years in prison


According to Fox Newx, the US authorities have accused a former Microsoft software engineer of allegedly fraudulent fraud when stealing a $ 10 million encryption money from the technology giant.

Volodymyr Kvashuk, 25, a Ukrainian citizen who lives in Washington, is an employee responsible for testing Microsoft's online retail platform. Although this pilot program does not allow the trading of physical products, it still allows him to access the purchase of corporate gift cards.

Therefore, the employee was accused of using test accounts on Microsoft's online store to steal these gift cards, then resell them on other websites in exchange for real money.

Declaration by the US Department of Justice said, in order to remove traces and origins of their illegal money, Kvashuk used the "mixing service" of Bitcoin (Bitcoin mixing service), to separate trading activities. Bitcoin with its identity, before transferring the proceeds from these deals to the bank account.

These services will confuse the amount of Bitcoin in the account, making it more difficult to trace in transaction history.

Police said, Kvashuk started its operations with "small" deals with an amount of only about $ 10,000 through identity from its own employee account. But then, when the scale of burglaries reached a million value, Kvashuk was allowed to use accounts related to other colleagues as well. In total, Kvashuk stole Microsoft gift cards worth up to $ 10 million.

Using Bitcoin to wash $ 10 million of dirty money, former Microsoft employee faces 20 years in prison - Photo 2.

In 7 months of his illegal activity, the authorities estimated that he had sneaked into his bank account of 2.8 million USD. Kvashuk is also accused of buying a $ 160,000 Tesla and a $ 1.6 million lakeside house with this illegal amount.

Microsoft internal investigators confronted Kvashuk in May 2018 and by the following month, the employee was fired by the company.

According to the DOJ statement, the case is being investigated by the US Secret Service and the US Department of Revenue's cybercrime.

If convicted, Kvashuk could face 20 years in prison and a fine of $ 250,000.

Refer to The Next Web



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