A supervising FBI agent with 'top secret' security clearance has been arrested and charged with stealing more than $1 million in cryptocurrency from wallets investigated by the agency. According to court filings, Patrick Steven Yaroch allegedly turned himself in to colleagues, reporting that he dug crypto keys from FBI systems to make as many as a dozen transfers to himself from accounts tied to foreign individuals he'd investigated. The top secret clearance holder had worked in counterintelligence, specifically with an investigative unit that focused on an unnamed 'adversary nation,' and was fired and arrested on July 31. As reported by AMBCrypto, Yaroch served as a supervisory special agent in the FBI headquarters' Counterintelligence and Espionage Division, having previously worked in the agency's Boston field office.
According to the latest court filings, Yaroch mixed the disputed cryptocurrency with his personal funds and used ChatGPT to consider what to do with the money. His questions reportedly covered how to spend or invest $1 million and whether he should leave the United States for a European country. The affidavit included a response where ChatGPT suggested Portugal based on personal details Yaroch shared, including his family, preferred property size, and interest in wine. As reported by AMBCrypto, authorities found that Yaroch had purchased a ticket to Portugal departing on September 3, along with a return flight. The FBI also discovered flights booked for Yaroch and his wife and child to fly to Portugal in September, along with documents providing power of attorney to two lawyers in Portugal, with directions to set Yaroch up with a tax identification number in the country.
According to the supporting affidavit, Yaroch obtained seed phrases associated with cryptocurrency wallets identified during FBI investigations into what court filings describe as 'adversarial cryptocurrency accounts.' Investigators say Yaroch memorised the recovery phrases, created a personal wallet, and carried out approximately 10 to 12 cryptocurrency transfers. The alleged transfers began in late 2024 or early 2025, with Yaroch later telling investigators the assets originated from accounts linked to an unnamed foreign adversary. In handling the digital assets, Yaroch was said to use accounts with Kraken and Suilend, the decentralized finance (DeFi) ecosystem for the Sui blockchain, via a Slush wallet. The court documents did not identify the digital assets involved or disclose the wallets from which they were allegedly taken.
The FBI placed Yaroch on administrative leave on July 29 before terminating his employment two days later. According to prosecutors, Yaroch met with Justice Department personnel on July 28, during which he allegedly admitted to making 'very poor decisions.' As reported by AMBCrypto, he said frustration over the FBI's inability to act against the wallets led him to 'take matters into his own hands.' During a search of his Virginia residence, investigators recovered electronic devices, a Trezor hardware wallet, and a handwritten seed phrase. The FBI searches of his computer and phone records revealed some of his recent questions to AI apps, including, 'If you had a bucket of money (around $1 million) and you wanted to leave the USA and become a resident or citizen of an EU country, what would you do?' To which the app allegedly recommended Portugal as a favored destination. Agents seized $925,426.07 from Yaroch's cryptocurrency wallets and accounts during a search of his home on Friday, as reported by Patch.com.
Investigators identified cryptocurrency linked to accounts on Kraken, Slush, and the Suilend protocol. According to court filings, Yaroch consented to transferring approximately $925,426 in cryptocurrency to government-controlled wallets. Additionally, investigators identified about $165,582 in US dollars held in his Kraken account. The complaint does not state that the cryptocurrency belonged to the FBI, instead describing wallets identified during federal investigations. Yaroch was also said to take recent trips to Germany, Portugal and Grenada that he hadn't reported internally, in violation of FBI rules. As reported by Patch.com, agents seized $925,426.07 from Yaroch's cryptocurrency wallets and accounts during a search of his home on Friday.
Yaroch was arrested on July 31 and placed in detention in Alexandria, Virginia. The FBI fired Yaroch on July 31, one day before the affidavit was filed, and he was later charged with interstate transportation of stolen goods and receipt of stolen goods, securities, and money. The allegations have been presented in a criminal complaint, and the case has not yet been tested in court. As with all criminal defendants, Yaroch is presumed innocent unless and until proven guilty. The charges carry decades of potential prison time, as reported by AMBCrypto. The bureau fired Yaroch immediately once the affidavit became public, and he now sits in federal custody awaiting trial. His arrest adds to a busy year for crypto-related prosecutions, including the Justice Department's recovery of a $700 million seizure from Southeast Asian scam networks in April.
