A former FBI agent has admitted to stealing nearly $2.5 million in cryptocurrency from digital wallets connected to federal investigations, exposing a serious breach of trust within the agency.
Patrick Steven Yaroch, 37, pleaded guilty to wire fraud and money laundering after using his access to FBI systems to obtain cryptocurrency wallet credentials and transfer funds for personal gain. According to prosecutors, the scheme involved approximately 100 unauthorized transactions linked to 35 separate investigations and generated $2,474,380.66.
The case also revealed that the stolen assets were not limited to wallets associated with suspected criminals. Some belonged to victims of financial crimes, while others were connected to two unidentified adversarial nation-states. At least one wallet had been funded by the FBI as part of an investigative operation.
How the Former FBI Agent Used His Position to Steal Crypto
Yaroch began taking cryptocurrency no later than December 2024, exploiting information available through his work with the FBI. He initially served in the agency’s Boston Division before becoming a supervisory special agent in the Counterintelligence and Espionage Division at FBI headquarters in February 2025.
His access allowed him to search investigative records for cryptocurrency wallet credentials. He then used the information to move funds into wallets under his control.
Court documents describe a remarkably broad pattern of theft. Yaroch carried out roughly 100 fraudulent transfers from at least 79 wallets, with individual transactions ranging from just 81 cents to more than $580,000.
After taking the funds, he moved portions through different cryptocurrencies and services in an effort to obscure their origins. One documented sequence involved transferring Bitcoin, converting some of it into Monero and Solana, and eventually moving assets through the Sui network before depositing funds into a Kraken account.
The transactions also had consequences beyond the financial losses. Prosecutors said Yaroch’s conduct compromised investigations involving criminal organizations and foreign adversaries, potentially exposing sensitive investigative methods and intelligence-gathering operations.
Stolen Cryptocurrency Helped Finance Plans for a New Life in Portugal
Yaroch reportedly used part of the proceeds to address personal financial obligations, including credit card balances and vehicle payments.
Court filings describe how he transferred approximately $93,082 into a TD Bank account between November 2025 and January 2026. The money was used to reduce debts, including around $30,176 in credit card payments and $20,000 toward a Lexus.
However, his plans extended beyond paying off outstanding bills. Investigators discovered that Yaroch was considering leaving the United States and establishing a new life in Portugal, where he hoped to purchase a vineyard.
In June, he reportedly asked ChatGPT for advice about relocating to a European Union country with approximately $1 million. His plans subsequently became more concrete: he gave Portuguese lawyers power of attorney to help register him with the country’s tax authorities and arranged travel connected to the potential move. The investigation also uncovered evidence that he had been preparing for this transition while still employed by the FBI. His plans ultimately fell apart after he disclosed his conduct to Justice Department personnel in July 2026.
Guilty Plea Brings Millions in Restitution and Forfeiture
Yaroch’s guilty plea covers one count of wire fraud and one count of money laundering. Each offense carries a potential maximum sentence of 20 years in prison, although the final punishment will be determined by the court. His sentencing is scheduled for March 4, 2027.
Under the plea agreement, Yaroch has agreed to pay at least $2.4 million in restitution and forfeit assets connected to the scheme. These include approximately 1.38 million SUI tokens, 17,990 USDC, and funds held in several bank and cryptocurrency exchange accounts. He also agreed to surrender any future proceeds from books, films, interviews, or other projects discussing his FBI career or the criminal case.
Another Case Raises Questions About the Security of Seized Crypto
The Yaroch case adds to wider concerns surrounding the handling of cryptocurrency connected to criminal investigations and government seizures.
Federal agencies regularly encounter digital assets while investigating cybercrime, fraud, ransomware operations, and illicit financial networks. Access to wallet credentials can therefore carry significant responsibility, particularly when those assets are tied to ongoing investigations or intelligence operations.
The case also follows a separate investigation involving the alleged theft of more than $46 million in cryptocurrency from wallets associated with the US Marshals Service. That investigation involved John Daghita, who was arrested in Saint Martin and is facing federal charges.
Do you think government agencies need stronger safeguards for cryptocurrency seized during investigations? And could cases like this affect public confidence in the security of government-managed digital assets?
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