Bitcoin theft: nine years in prison for ex-Microsoft employees

This action is dearly for a former Bitcoin Loophole employee: he received nine years in prison for multiple Bitcoin thefts with hacked accounts from colleagues.

The anonymity of the Internet attracts many black sheep, and it is no different in the area of ​​digital currencies

Stupid for the criminals only when the supposed anonymity turns out to be not as secure as initially thought . This is the experience now made by someone who you should actually think should know better. In fact, the investigators actually went online with a former Microsoft employee. He had stolen Bitcoin worth more than 10 million US dollars, as the US authorities in a message declared.

He used his knowledge as a software engineer to hack accounts and passwords and use them to steal digital gift cards. He sells these online and used the proceeds to treat himself to extravagant vehicles and houses by the sea. Now he sees bars instead of surging waves, as he will have to spend the next nine years under lock and key.

The perpetrator’s personal details are known. The 26-year-old Ukrainian citizen Volodymyr Kvashuk initially worked as a contractor at Microsoft. He was employed by Microsoft from August 2016 until his release in June 2018. In February 2020, he was convicted by a jury of multiple transfer fraud, money laundering, serious identity theft, filing false tax returns and, in one case each, of postal fraud, fraud with access devices and access to a protected computer to promote fraud.

Defendant used accounts from Microsoft colleagues

Kvashuk was trying out Microsoft’s online retail platforminvolved. He used this test access to steal Currency Stored Value (CSV) such as digital vouchers. The Ukrainian resold the CSVs on the Internet. Initially, he only stole small amounts through his own account. But then he also used test e-mail accounts that were connected to other employees. He used a mixing service for Bitcoin to hide the source of the funds that eventually ended up in his bank account. In total, about $ 2.8 million was transferred to its accounts as bitcoin in the seven months of Kvashuk’s illegal activities.

He was also guilty of tax evasion by providing false information. The punishment was so high because the culprit wanted to draw suspicion on others by hacking his colleagues‘ accounts.

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