Xbox Bitcoin Fraud Explained: Cheating Microsoft out of $10 million in gift cards

Rumors of Xbox Bitcoin fraud are circulating online, causing concern amongst crypto investors and Xbox fans alike. Is there a fake cryptocurrency using the Xbox name? Is either camp at risk of falling victim to an Xbox cheat Bitcoin scheme? Here’s the lowdown on the Microsoft Bitcoin (BTC) scam.

Xbox Bitcoin Cheat: What is the $10 million Bitcoin scam?

Xbox Bitcoin cheat

Microsoft employee Volodymyr Kvashuk stole over $10 million in Xbox gift cards and sold them to fund purchasing Bitcoin (BTC). This was an inside job taking advantage of an internal loophole, so there is no risk to the average person.

Bloomberg broke the report, revealing that Kvashuk found a way to make essentially infinite amounts of money through generating free Xbox gift card codes. The Microsoft engineer’s embezzlement scheme went unnoticed for over two years, though that didn’t last. After committing fraud on a huge scale, Kvashuk faced prosecution and has ultimately been found guilty.

Following the Xbox BTC fraud, Volodymyr Kvashuk’s court defense alleged it was an experiment in aid of improving the store experience. The court found Kvashuk guilty, handing down nine years in prison and an $8.3 million restitution payment; it’s also possible the engineer will face deportation back to his native Ukraine.

For anyone left wondering, there isn’t an official Xbox crypto. Discussions surrounding Microsoft Bitcoin relate to this embezzlement scheme, rather than an actual form of cryptocurrency or crossover collaboration.

Microsoft is officially collaborating with Nike and Space Jam: A New Legacy, however. There are colorful Xbox x Space Jam controllers and sneakers to purchase — here’s how.

In other Xbox news, players will be able to make their Xbox Series S consoles portable soon. UPspec Gaming’s xScreen peripheral beat its Kickstarter funding goal in just 20 minutes, which is an impressive feat. If it continues to do well, the future could hold an Xbox Series X version.