Former employee stole $ 900,000 worth of bitcoins from ShapeShift

Former employee stole $ 900,000 worth of bitcoins from ShapeShift

  • ShapeShift Says Her Former Employee Stole $ 900K in Bitcoin

  • ShapeShift filed a lawsuit against the company’s software engineer.

  • Former employee transferred approximately 90 bitcoins to an external account.

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ShapeShift has caught a former employee of stealing 90 bitcoins. He returned the money, but the company is now seeking reimbursement of the costs incurred in connection with the theft

Former employee stole $ 900,000 worth of bitcoins from ShapeShift

The cryptocurrency company ShapeShift has filed a civil lawsuit in the US District Court against Azamat Mukhiddinov, who has worked as a senior software engineer since August 2018. The company accused him of gaining access to ShapeShift’s computer infrastructure in order to install a program that gradually transferred bitcoins from Shapeshift’s corporate account to an external wallet..

From November 2019 to May 2020, Mukhiddinov allegedly managed to transfer about 90 bitcoins to his account.

“Simply put, someone stole $ 900,000 worth of bitcoins from ShapeShift via wire transfer,” the ShapeShift complaint said. In May, ShapeShift had to use “a huge amount of internal and external resources” to find the culprit.

The company came to the conclusion that Mukhiddinov was to blame. On May 25, ShapeShift filed charges against Mukhiddinov, who admitted the theft. However, according to him, he spent some of the stolen bitcoins and converted some of the money into US dollars..

“Accordingly, Azamat was unable to return $ 900,000 in bitcoins; some amount had to be deposited in cash or in another cryptocurrency, ”the complaint says.

Former employee stole $ 900,000 worth of bitcoins from ShapeShift

Just a few hours after talking with ShapeShift representatives, Mukhiddinov handed over a gym bag containing $ 31,900, and then transferred 60 bitcoins to ShapeShift. The rest of the amount was transferred in installments.

“In the end, Azamat returned in one form or another all the $ 900,000 he had stolen,” ShapeShift said..

However, ShapeShift wants to recover the costs of the investigation. Due to the alleged theft, ShapeShift employees had to stay late in the office to rewrite the code, protect ShapeShift’s software and “generally carry out thorough work to restore the company’s computer networks, software and infrastructure,” notes ShapeShift.

In addition, employees were forced to be distracted “from other lucrative tasks, responsibilities and projects; they also had to temporarily shut down the computer network and Internet services, which affected the company’s business and its ability to generate income. ” As a result, ShapeShift postponed the release of its flagship mobile app by two months.

“In total, ShapeShift’s expenses related to the investigation of the theft and elimination of its consequences amounted to tens of thousands of dollars, if not more,” the company noted, and now it wants Mukhiddinov to repay the debt.


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