A former FBI agent pleaded guilty to stealing nearly $2.5 million in cryptocurrency using confidential credentials obtained through dozens of federal investigations—expanding a case that initially involved about $1 million in stolen digital assets.
Former FBI Agent Steals Cryptocurrency During 35 Investigations
Former FBI counterintelligence agent Patrick Steven Yaroch, hailing from Ashburn, Virginia, pleaded guilty Thursday to wire fraud and money laundering charges brought by the Justice Department.
Prosecutors revealed Yaroch executed roughly 100 illegal cryptocurrency transfers using credentials tied to 35 different FBI investigations, pulling in $2,474,380.66 in stolen funds. Beginning by December 2024, the thefts targeted wallets owned by criminal suspects, foreign state actors, and at least one wallet set up by the FBI for undercover work.
Yaroch served in the FBI’s Boston Division from 2017 to early 2025, probing a hostile foreign government, before moving to the Counterintelligence and Espionage Division. His roles provided access to sensitive data, including cryptocurrency wallet credentials gathered during federal investigations.
Upon siphoning the funds, Yaroch converted them into alternative cryptocurrencies and funneled them through extra transactions to obscure their origin and ownership. Between November 2025 and January 2026, roughly $93,082 was transferred into one of his accounts, with funds later shifted across personal accounts to cover credit card bills, auto loans, and other debts.
Investigators also uncovered schemes to spend the stolen money on launching a new life abroad.
Prosecutors state that Yaroch queried ChatGPT regarding investment tactics and ideal relocation spots within the European Union. Following a recommendation to buy a Portuguese vineyard, Portuguese attorneys were authorized in June 2026 to secure a tax identification number and manage administrative tasks for him, setting up his planned trip to Portugal that September.
Initially, authorities alleged he stole about $1 million from cryptocurrency wallets belonging to a foreign intelligence target after retrieving their recovery phrases. Investigators noted that government officials were voluntarily approached by Yaroch, who confessed to mishandling the crypto wallets.
Early probes identified assets held across the Kraken exchange and decentralized lending platform Suilend, with approximately $925,426 in cryptocurrency recovered during the initial inquiry. The newest revelation confirms the operation was significantly broader than first reported, entangling dozens of distinct FBI cases rather than a solitary foreign intelligence target.
Federal prosecutors emphasized that Yaroch’s conduct reached beyond financial damage, crippling major operations targeting criminal networks and hostile foreign states. The Justice Department reported that sensitive FBI intelligence methods were exposed alongside critical sources relied upon for criminal and national security cases.
This incident joins a string of past cases involving law enforcement officers who siphoned cryptocurrency seized during active investigations. reported in October that former British National Crime Agency officer Paul Chowles was ordered to repay roughly $2.38 million after stealing 50 bitcoin confiscated in a Silk Road 2.0 bust. Chowles had previously received a five-and-a-half-year prison term.
Yaroch is scheduled for sentencing on March 4, 2027, facing up to 20 years behind bars. U.S. District Judge Patricia Tolliver Giles will determine the final sentence after considering federal guidelines and other relevant factors.
