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"Kvashuk’s grand scheme was thwarted by the hard-work of IRS-CI’s Cyber Crimes Unit"

Something that caught the IRS's attention, apparently. Probably lots of deposits of real money to real banks, from a crypto exchange.

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I'd agree, 2.8m showing up in accounts will always trigger flags; there's just no way to avoid someone asking questions at that level.

Saying Crypto isn't enough which is why he tried to say it was a 'family member gift' which he couldn't prove. Probably all he could show was that his currency came in from a mixer which is going to raise questions.

I'm surprised he didn't simply hold tether (if he wanted stable) and then drip it into his accounts.

I think it's a common theme of how fraudsters get caught, they get greedy.

Banks in the U.S. are required to notify the IRS of any deposits/withdrawals in excess of $10,000.

My guess would be that Microsoft tipped them off. I couldn't find in the compliant where the IRS or Secret Service got involved, but it does say that Microsoft Fraud Investigators discovered the fraud and fired him.

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