Shapeshift former employee allegedly used the access to the exchange’s backend to steal roughly 90 BTC, worth nearly $900,000

Recently, cryptocurrency company ShapeShift filed a lawsuit against its former technical staff, allegedly stealing more than 90 bitcoins from the company’s accounts.

ShapeShift employees have been stealing Bitcoin continuously for over six months

Azamat Mukhiddinov, a former senior software engineer, hired by ShapeShift in August 2018, has been accused of installing an illegal program to steal Bitcoin from ShapeShift corporate accounts to a personal wallet.

The court documents state:

“Azamat Mukhiddinov’s actions took place from November 2019 to May 2020. Azamat earned 90 Bitcoins during that time but was caught after ShapeShift used large amounts of internal and external resources to track it down. Catch the culprit.”

Azamat eventually faced ShapeShift on May 25 and admitted the theft after that. But he confessed to spending some of the stolen Bitcoins and converting it to US dollars.

The exchange said:

“Eventually, Azamat returned, in one form or another, all of the $900,000 in bitcoin he had stolen.”

ShapeShift then had to find a way to reimburse the upfront costs they had to pay to track Azamat. ShapeShift said its employees had to rewrite the code, secure ShapeShift’s software, and thoroughly fix the company’s computer networks, software, and infrastructure.

The company said:

“In total, ShapeShift’s costs and expenses relating to the investigation of Azamat’s theft and the repair of its effects totaled tens of thousands of dollars, if not more.”

Jonathan “Duke” Leto, the founder of privacy protocol Hush, said the fact that an employee stealing 0.5 Bitcoin a day continuously for months is a sign of danger should have been arrested in the first place.

Furthermore, this negligence shows that the monitoring system at ShapeShift is not as good as expected as Azamat has been stealing Bitcoin daily for months. Fortunately, this company found the culprit before he spent all their money and disappeared.

Meanwhile, Erik Vorhees, founder of ShapeShift, has countered that all user funds on the ShapeShift fund are stored in a secure wallet with a well-designed feature.

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