FBI Agent Charged With Stealing $1 Million in Crypto From Investigated Wallets

A former supervisory FBI agent has been charged with stealing nearly $1 million in cryptocurrency from wallets monitored as part of a national security investigation, according to court records made public Monday.

Patrick Steven Yaroch, a veteran counterintelligence officer who held top-secret clearance, allegedly used his access to classified information to obtain wallet credentials and transfer the assets into an account he controlled.

The FBI dismissed Yaroch after learning of the allegations, while federal prosecutors charged him with interstate transportation of stolen property and receipt of stolen goods. He remains presumed innocent unless proven guilty.

Our Top Crypto Sports Betting Partners:

Sponsored

Disclosure

We sometimes use affiliate links in our content, when clicking on those we might receive a commission at no extra cost to you. By using this website you agree to our terms and conditions and privacy policy.

#1

Jack.com

Opened in 2021

Promotions

100% Sports Bet Refund, Get Your First Bet Back If It Loses!

Coins

+11

Claim Offer Read Review

#2

Vave

Opened in 2022

Promotions

100% First Deposit Bonus up to 1 BTC

Coins

+53

Claim Offer Read Review

#3

TrustDice

Opened in 2018

Promotions

First Bet RISK-FREE

Coins

+6

Claim Offer Read Review

Show More

Agent Allegedly Drained Wallets Under FBI Surveillance

Yaroch reportedly discovered the cryptocurrency while serving on an FBI national security squad investigating an unnamed “adversarial nation.”

According to an affidavit filed in the Eastern District of Virginia, he became frustrated because the government had not moved more aggressively to disrupt the wallet owner’s activity.

Prosecutors allege that he subsequently used internal FBI systems to locate passphrases associated with the monitored wallets.

Beginning in late 2024, Yaroch allegedly moved the assets through between 10 and 12 transactions into a wallet under his control.

Authorities recovered $925,426.07 in cryptocurrency during his arrest, the affidavit said.

The case raises questions about the controls governing sensitive digital assets uncovered during federal investigations.

US agencies regularly identify wallets associated with suspected criminals and foreign state actors, but officials may delay seizure to collect intelligence or preserve an ongoing operation.

By allegedly acting independently, Yaroch could have compromised both government property and a sensitive counterintelligence investigation.

ChatGPT Logs Revealed Research Into Leaving the US

Investigators also uncovered chatbot records that appeared to show Yaroch considering how to use the money and potentially leave the United States.

About a month before his arrest, Yaroch allegedly asked ChatGPT how someone with roughly $1 million could move abroad and obtain residency or citizenship in a European Union country.

The response reportedly considered his age, young family, and interest in building a slower-paced agricultural lifestyle in locations such as Portugal or Italy.

Records also showed that Yaroch had booked travel to Portugal and obtained power-of-attorney documents from a Portuguese law firm.

When FBI agents interviewed him at his home, Yaroch allegedly admitted taking the cryptocurrency and said the situation was “eating him up inside.”

Insider Theft Highlights a Different Crypto Security Risk

The FBI said it acted immediately after becoming aware of the allegations, opening an investigation and executing an arrest warrant. A spokesperson added that the bureau holds employees to high ethical standards and does not tolerate such conduct.

The case highlights an aspect of crypto security that traditional hacking statistics may overlook: insiders with legitimate access to sensitive information.

https://twittercom/Quan_Chain/status/2084481402347659441

TRM Labs reported that cryptocurrency thefts caused approximately $972 million in losses across 207 incidents during the first half of 2026.

However, those figures may not fully reflect cases involving government employees or contractors who allegedly misuse privileged access.

Yaroch’s arrest follows other alleged insider schemes involving government-controlled assets. In March, the son of a federal contractor was accused of stealing $46 million linked to the US Marshals Service.

It remains unclear whether the FBI will introduce tighter restrictions on agents’ access to wallet passphrases and other cryptocurrency intelligence. The bureau said its wider investigation remains ongoing and declined to comment further.