29.07.2021

Crypto News

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Microsoft Employee Gets Nine Years in Prison for Bitcoin Fraud

Microsoft Employee Gets Nine Years in Prison for Bitcoin Fraud

A Microsoft employee who used the data of colleagues to cheat with bitcoin and various gift cards has been sentenced to nine years in prison.

26-year-old Ukrainian Vladimir Kvashchuk lived in Washington and worked at Microsoft from August 2016 to June 2018. He used the personal data of colleagues to steal and then resell various gift cards.

Kvaszczuk transferred the profits to bitcoin and used mixing services to hide the origin of the funds. After that, the cryptocurrency was exchanged for US dollars and transferred to Kvaschuk’s accounts. The damage from his actions amounted to $10 million.

Interestingly, Kvaschuk even reported to the US Internal Revenue Service (IRS) that he received bitcoins. However, in his tax return, the criminal indicated that the cryptocurrency was given to him by a relative.

According to IRS Special Agent Ryan Korner, this is the first case in the United States related to bitcoin and tax fraud. He noted that now the IRS has all the necessary competencies to track cryptocurrencies:

“Simply put, today’s verdict shows that you can’t steal funds over the Internet, run them through bitcoin and think that it covered up your crime.”

Kwaszczuk was found guilty of 18 counts of violating federal laws, including six counts of money laundering and two counts of filing false tax returns. With the proceeds, the former Microsoft employee bought a lakeside home for $1.6 million, as well as a Tesla electric car for $160,000.Recall that in early November, Russia convicted former hockey player Igor Musatov for fraud with cryptocurrencies. He received a sentence of four years in a penal colony.