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Microsoft former employee arrested on alleged theft of leaking trade secrets

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NBC reports a story today that a former employee has been arrested after an internal Microsoft investigation and a FBI investigation on criminal charges of stealing trade secrets. The story first broke on the Seattle Post-Intelligencer Wednesday afternoon.

It is now revealed that Alex Kibkalo, a Russian national, who worked for Microsoft became disgruntled over a poor performance review and leaked to a blogger in France the details of the upcoming release of Microsoft Windows 8 operating system.

Details of the FBI investigation and evidence collection show that the Kibkalo provided the same blogger with the Activation Server SDK (software development kit), internal-only code to create the activation systems which validate product keys, Microsoft's primary anti-piracy technology.

In the criminal complaint filed on Monday at the U.S. District Court in Seattle, FBI Special Agent Armando Ramirez wrote in the complaint that Kibkalo, a Russian national and an employee in the Lebanon office in 2012, was upset by a poor performance evaluation. This caused him to begin leaking the software information for the upcoming Windows 8 operating system.

The FBI was able to introduce into court the details due to the Hotmail of the blogger in France. Once the blogger had the initial information, the court document filed by the investigation of Ramirez states that Kibkalo had told the blogger in France to contact a computer hacker who would write a fake activation key from the stolen Activation Server SDK.

The French blogger posted screen shots of the stolen Microsoft unreleased Windows 8 and attempted to sell the activation key on eBay.

In September 2012, Microsoft’s internal investigation interviewed Kibkalo and he allegedly admitted that he ‘leaked confidential and proprietary Microsoft information, products and product-related information to the blogger,’ the FBI charge sheet stated.

Kibkalo was fired but not charged at the time. He moved to another firm named 5nine Software that lists itself as ‘vendor of management and security applications for Windows Server and Microsoft Hyper-V.'

Kibkalo was arrested yesterday, has been held without bail due to flight risk and has had a court-appointed attorney assigned to him.

To find more information about Microsoft and cyber security view the list below in Author’s suggestions and the video atop this article with the two former and the current CEO of Microsoft.

Twitter: Victoria Wagner@victoriaross888

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