Ex-Microsoft worker accused of trade-secret leaks

  • Associated Press
  • Thursday, March 20, 2014 4:40pm
  • Business

SEATTLE — FBI agents arrested a former Microsoft employee Wednesday on charges that he stole trade secrets from the company and leaked them to a blogger.

Federal prosecutors are accusing Alex A. Kibkalo of stealing trade secrets related to pre-release software updates for Windows 8 and Microsoft’s “Activation Server Software Development Kit,” and giving that information to a tech blogger in France.

Kibkalo is a Russian national and former seven-year Microsoft employee who worked as a software architect in Lebanon, according to a complaint filed Monday in U.S. District Court in Western Washington.

Federal agents made the arrest Wednesday morning in Bellevue, where he apparently was traveling. He lives in Russia, The Seattle Times reported (http://bit.ly/1mj1wdg).

The complaint says an internal investigation by Microsoft concluded that in July and August 2012, Kibkalo uploaded the proprietary software to a computer in Redmond and then to his personal SkyDrive account.

Kibkalo then allegedly provided the blogger with links to the files on his account and encouraged the blogger to share the software development kit with those “who might be able to reverse engineer the software and write ‘fake activation server’ code,” the complaint says.

Microsoft investigators interviewed Kibkalo in September 2012, and Kibkalo admitted he had provided confidential Microsoft products and information to the blogger, including “internal unreleased ‘hotfixes’ for Windows 8, ‘code for the PID generator’ (a technical description of the SDK), unreleased versions of Windows Live messenger and documents and presentations about products,” an FBI agent said in the complaint.

The Windows 8 hotfixes were intended to update and correct critical operating system flaws prior to the release of the operating system.

The blogger to whom Kibkalo allegedly provided the information is unnamed in the complaint but “was known to those in the Microsoft blogging community for posting screenshots of pre-release versions of the Windows Operating System.” That blogger “deliberately hid his identity,” the complaint says.

The blogger allegedly admitted in an interview to “knowingly obtaining confidential and proprietary Microsoft IP from Kibkalo, and selling Windows Server activation keys on eBay.” The complaint also says computer files found in the blogger’s home showed the blogger trying to get Kibkalo to find pre-release software, attempting to use Kibkalo’s corporate network access to get into Microsoft servers, and discussing Kibkalo leaking data.

Microsoft issued a statement Wednesday, saying: “We take protection of our intellectual property very seriously, including cooperating with law enforcement agencies who are investigating potential criminal actions by our employees or others.”

Kibkalo could not be immediately reached for comment.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Business

Lily Lamoureux stacks Weebly Funko toys in preparation for Funko Friday at Funko Field in Everett on July 12, 2019.  Kevin Clark / The Herald)
Everett-based Funko ousts its CEO after 14 months

The company, known for its toy figures based on pop culture, named Michael Lunsford as its interim CEO.

The livery on a Boeing plane. (Christopher Pike / Bloomberg)
Former Lockheed Martin CFO joins Boeing as top financial officer

Boeing’s Chief Financial Officer is being replaced by a former CFO at… Continue reading

Izaac Escalante-Alvarez unpacks a new milling machine at the new Boeing machinists union’s apprentice training center on Friday, June 6, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
Boeing Machinists union training center opens in Everett

The new center aims to give workers an inside track at Boeing jobs.

Some SnoCo stores see shortages after cyberattack on grocery supplier

Some stores, such as Whole Foods and US Foods CHEF’STORE, informed customers that some items may be temporarily unavailable.

People take photos and videos as the first Frontier Arlines flight arrives at Paine Field Airport under a water cannon salute on Monday, June 2, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
Water cannons salute Frontier on its first day at Paine Field

Frontier Airlines joins Alaska Airlines in offering service Snohomish County passengers.

Amit B. Singh, president of Edmonds Community College. 201008
Edmonds College and schools continue diversity programs

Educational diversity programs are alive and well in Snohomish County.

A standard jet fuel, left, burns with extensive smoke output while a 50 percent SAF drop-in jet fuel, right, puts off less smoke during a demonstration of the difference in fuel emissions on Tuesday, March 28, 2023 in Everett, Washington. (Olivia Vanni / The Herald)
Sustainable aviation fuel center gets funding boost

A planned research and development center focused on sustainable aviation… Continue reading

Helion's 6th fusion prototype, Trenta, on display on Tuesday, July 9, 2024 in Everett, Washington. (Olivia Vanni / The Herald)
Helion celebrates smoother path to fusion energy site approval

Helion CEO applauds legislation signed by Gov. Bob Ferguson expected to streamline site selection process.

Britney Barber, owner of Everett Improv. Barber performs a shows based on cuttings from The Everett Herald. Photographed in Everett, Washington on May 16, 2022. (Kevin Clark / The Herald)
August 9 will be the last comedy show at Everett Improv

Everett improv club closing after six years in business.

Pharmacist John Sontra and other employees work on calling customers to get their prescriptions transferred to other stores from the Bartell Drugs Pharmacy on Hoyt Avenue on Wednesday, July 2, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
Bartell Drugs location shutters doors in Everett

John Sontra, a pharmacist at the Hoyt Avenue address for 46 years, said Monday’s closure was emotional.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.