Former FBI Agent Charged With Stealing Nearly $1 Million in Crypto
by Maisie Morrison · BlockonomiTLDR
Table of Contents
- A former FBI supervisory special agent has been charged with stealing crypto tied to federal investigations.
- Prosecutors say Patrick Steven Yaroch moved funds from wallets connected to FBI counterintelligence cases.
- He allegedly memorized seed phrases and transferred crypto into his own wallet about 10 times.
- Investigators found a Trezor hardware wallet, handwritten seed phrases, and a Kraken account holding around $188,570.
- Yaroch reportedly used ChatGPT to ask about investing the money and moving to Europe.
A former FBI supervisory special agent is facing criminal charges after prosecutors said he stole cryptocurrency tied to ongoing investigations.
Patrick Steven Yaroch was charged on Friday with interstate transportation of stolen goods and receipt of stolen goods.
Court documents say the theft happened between early 2025 and July 2026. During that time, Yaroch worked in the FBI’s Counterintelligence and Espionage Division and held a Top Secret security clearance.
How the Theft Allegedly Happened
Prosecutors say Yaroch accessed FBI systems to get cryptocurrency wallet seed phrases connected to investigations involving a foreign adversary. He allegedly memorized the recovery phrases rather than writing them down.
Using those phrases, he created his own wallet and moved funds into it about 10 times, according to court filings. Investigators say the stolen holdings grew to around $1 million over time.
The case came to light after Yaroch contacted a Justice Department employee on July 28, 2026, through Signal. He asked to meet in person to discuss personal matters.
According to court filings, Yaroch broke down and admitted what he had done during that meeting at FBI headquarters.
What Investigators Found
Agents searched Yaroch’s home and devices after his admission. They recovered a Trezor hardware wallet along with handwritten cryptocurrency seed phrases.
Investigators also found a Kraken account holding about $188,570. That amount included roughly $166,000 in U.S. dollars and nearly $18,000 in USDC, along with small amounts of Bitcoin and other digital assets.
Chat logs recovered from Yaroch’s phone showed conversations with ChatGPT. In late May, he reportedly asked how to invest or spend $1 million to get the best return.
Days later, he asked what someone with $1 million should do to move to Europe and gain residency or citizenship there.
Other searches included questions about visa requirements when traveling through Turkey. He also asked for help writing an email about a job opportunity and life in Greece.
Agents found records of a planned family trip to Portugal and power of attorney documents related to that country. Prosecutors said this travel had not been reported before.
According to the complaint, agents told Yaroch they had found the power of attorney forms for Portugal. Yaroch said he was not planning to move money into the country.
He told agents his family had a trip planned to Portugal in September 2026 to visit friends. He said he realized he might not be able to go but hoped his wife and child would still make the trip.
Yaroch was arrested on July 31, 2026, based on the evidence gathered during the investigation.