Microsoft employee robbed $10 million in store credit


Volodymyr Kvashuk, a former software engineer at Microsoft from Ukraine, is sentenced to nine years in prison for stealing more than $ 10 million over two years.

Kvashuk used Microsoft Store test accounts while he was part of the company’s global store team to steal $ 10 million worth of stored currency CSV from Microsoft’s online store via unauthorized purchases of products.

Microsoft’s fraud control team, FIST, discovered its plan in February 2018, after noticing a suspicious increase in Xbox Live subscriptions purchased using stored value currency, including gift cards.

The stored value currency was stolen between August 26, 2016 and June 22, 2018, when it was fired, then resold at a discount in online markets via at least retailers and

These third parties were then able to recover the stored value and purchase digital and physical goods from Microsoft.

The software giant was able to include only about $ 1.8 million of the valuable currency stored in the blacklist to be recovered after it sold Kvashok to its customers, which represents a total financial loss of about $ 8.3 million.

Kvashuk then used the services of to hide the origin of the money he obtained after selling the stolen stored value, as well as by purchasing Bitcoin with Xbox gift cards via the Paxful cryptocurrency exchange.

Kvashuk was able to transfer nearly $ 2.8 million of Bitcoin into his investment and bank accounts, and the funds were later disguised as gifts from his relatives in fraudulent tax return forms.

In March 2018, Kvashuk bought a Tesla for about $ 162,000, while in June 2018 he paid about $ 1.675 million for a home.