- A former Microsoft worker was sentenced to 9 years in jail Monday for stealing $10 million from the tech firm.
- Throughout his time as a software program engineer at Microsoft, Volodymyr Kvashuk labored on testing the corporate’s platform for on-line retail gross sales.
- Kvashuk used that entry to steal tens of millions in reward playing cards and retailer credit score, which he bought for bitcoin.
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A former Microsoft software program engineer was sentenced to 9 years in jail for stealing over $10 million in retailer credit score and promoting it for bitcoin, the IRS introduced on Monday.
The case is a landmark for the IRS, because it’s “the nation’s first bitcoin case that has a tax element to it,” Ryan Korner, the IRS Legal Investigation particular agent in cost, stated.
Volodymyr Kvashuk labored on testing Microsoft’s on-line retail platform between 2016 and 2018, in keeping with the IRS. At first, he stole smaller quantities in reward playing cards and different retailer credit score, totaling about $12,000, utilizing his personal account entry, the IRS stated. Nevertheless, as he took an increasing number of, he started utilizing coworker’s emails to take the cash, in keeping with officers.
“Stealing out of your employer is unhealthy sufficient, however stealing and making it seem that your colleagues are in charge widens the injury past and cents,” US Legal professional Brian Moran stated in a press release.
Kvashuk then bought the stolen retailer credit score for $2.eight million in bitcoin, in keeping with the IRS. He additionally used a bitcoin “mixing” service to cover the supply of the cash he put in his financial institution accounts, the company stated. To the IRS, he claimed that the funds had been a present from a relative.
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Kvashuk used the cash to purchase a $160,000 Tesla and a $1.6 million residence on the water, officers stated.
Throughout the trial, Kvashuk denied committing fraud, as a substitute claiming that he was “engaged on a particular challenge for the corporate,” in keeping with the IRS.
“Somewhat than taking accountability, he testified and informed a sequence of outrageous lies. There isn’t any signal that Kvashuk feels any regret or remorse for his crimes,” prosecutors Michael Dion and Siddharth Velamoor wrote to the courtroom.
Along with time in jail, the courtroom ordered that Kvashuk should pay again $eight,344,586. He may face deportation to his residence nation of Ukraine, the IRS stated.
Kvashuk and Microsoft didn’t reply to Enterprise Insider’s requests for remark concerning the case.