Fired Microsoft Software Engineer Sentenced to 9 Years in Prison

He stole $10 million of digital currency from Microsoft and tried to blame it on colleagues.

By Matthew Humphries

Drew Angerer/Getty Images via PC Mag

This story originally appeared on PC Mag

A former employee of Microsoft has been sentenced to nine years in prison for 18 federal felonies following the discovery he stole over $10 million in digital currency from his employer.

The man in question is Volodymyr Kvashuk, a software engineer who first worked as a contractor at Microsoft before becoming an employee. He was tasked with testing Microsoft's online retail sales platform, but decided to take advantage of it instead. He proceeded to steal "currency stored value" (CSV) from the platform in the form of digital gift cards. The currency was then resold by Kvashuk on the internet and a bitcoin "mixing" service utilized in an attempt to hide where the cash entering his bank had originated from. Kvashuk even went so far as to use test email accounts of other Microsoft employees to help hide his fraudulent activity.

This was no small fraud, with the amounts being stolen eventually totaling over $10 million in digital value. Over a seven month period he transferred $2.8 million in bitcoin to his bank account and purchased a $1.6 million lakefront home and $160,000 Tesla electric vehicle. A fake tax return was also filed claiming the bitcoin was a gift from a relative.

Kvashuk was employed by Microsoft from August 2016 to June 2018 when he was fired. According to GeekWire, Microsoft investigated what was happening and confronted Kvashuk in May 2018. In February this year the Department of Justice reports he was "convicted by a jury of five counts of wire fraud, six counts of money laundering, two counts of aggravated identity theft, two counts of filing false tax returns, and one count each of mail fraud, access device fraud, and access to a protected computer in furtherance of fraud."

"Stealing from your employer is bad enough, but stealing and making it appear that your colleagues are to blame widens the damage beyond dollars and cents," said U.S. Attorney Moran. "This case required sophisticated, technological skills to investigate and prosecute, and I am pleased that our law enforcement partners and the U.S. Attorney's Office have the skill sets needed to bring such offenders to justice."

In the sentencing memo to the Court, prosecutors said, "Kvashuk used the proceeds to live the life of a millionaire, driving a $160,000 car and living in a $1.6 million waterfront home. Kvashuk's scheme involved lies and deception at every step. He put his colleagues in the line of fire by using their test accounts to steal CSV. Rather than taking responsibility, he testified and told a series of outrageous lies. There is no sign that Kvashuk feels any remorse or regret for his crimes."

Kvashuk is a Ukranian citizen who resides in Renton, Washington. As well as the nine year prison term he was ordered to pay $8,344,586 in restitution. There's also a good chance he will be deported once released from prison.

Matthew Humphries

Senior Editor

Related Topics

Editor's Pick

Everyone Wants to Get Close to Their Favorite Artist. Here's the Technology Making It a Reality — But Better.
The Highest-Paid, Highest-Profile People in Every Field Know This Communication Strategy
After Early Rejection From Publishers, This Author Self-Published Her Book and Sold More Than 500,000 Copies. Here's How She Did It.
Having Trouble Speaking Up in Meetings? Try This Strategy.
He Names Brands for Amazon, Meta and Forever 21, and Says This Is the Big Blank Space in the Naming Game
Business News

These Are the Most and Least Affordable Places to Retire in The U.S.

The Northeast and West Coast are the least affordable, while areas in the Mountain State region tend to be ideal for retirees on a budget.

Thought Leaders

The Collapse of Credit Suisse: A Cautionary Tale of Resistance to Hybrid Work

This cautionary tale serves as a reminder for business leaders to adapt to the changing world of work and prioritize their workforce's needs and preferences.

Business Solutions

Learn to Build a ChatGPT Bot for Only $30

If you want to see what AI can do for your business, grab this course bundle today.

Health & Wellness

5 Essential Steps to Expand Your Vision and Start Living Your Dream Life

It's time to break free from your comfort zone and expand your vision. When you refuse to settle for a mediocre life, you can start building a life you love.

Business News

I'm a Former Google Recruiter. Here's How to Land a Job in Tech — and What Can Blow Your Interview

A former Google recruiter says layoffs may be trendy, but tech workers are always needed. Here's how to land a job at a major tech company.

Business News

The 'Airbnbust' Proves the Wild West Days of Online Vacation Rentals Are Over

Airbnb recently reported that 2022 was its first profitable year ever. But the deluge of new listings foreshadowed an inevitable correction.