A former Microsoft engineer was sentenced to nine years in prison for stealing more than $ 10 million in digital currency storage value (CSV), including gift cards, from his former employer.
Volodymyr Kvashuk, a 26-year-old Ukrainian national residing in Washington, used his colleagues’ accounts and identities to steal and then sell the CSV – making it appear that his employees were responsible for the fraud. Kvashuk also used a bitcoin (BTC) blending service to further disguise the paper trail and filed fraudulent tax returns
Brian Moran of the U.S. Attorney’s Office said:
“Stealing from your employer is bad enough, but stealing and making it seem like your coworkers are to blame will do more than dollars and cents to the damage.”
Kvushuk was charged with 18 federal crimes, including six money laundering cases and two false tax returns. The Ukrainian used the stolen funds to buy a lakeshore house valued at $ 1.6 million and a Tesla vehicle valued at $ 160,000.
According to Ryan Korner, special agent for the Internal Revenue Service, the conviction is “the first Bitcoin case in the country to have a tax component.”
“Put simply, today’s conviction proves that you cannot steal money over the internet and believe that Bitcoin will hide your criminal behavior.”
Kvashuk worked at Microsoft from August 2016 until he was fired in June 2018.