A former FBI agent’s crypto theft involved approximately $2.47 million taken with wallet credentials collected during federal investigations, the Justice Department said Thursday. Patrick Steven Yaroch pleaded guilty to wire fraud and money laundering in a case that compromised investigations into criminal groups and nation-state adversaries.
Summary
Key takeaways
- Yaroch’s theft involved roughly 100 transfers linked to 35 FBI investigations.
- Prosecutors said he converted and moved stolen cryptocurrency to conceal its origin.
- His sentencing is scheduled for March 4, 2027.
Yaroch, 37, of Ashburn, Virginia, entered his plea in federal court in Alexandria. The plea agreement’s statement of facts describes damage beyond the stolen money: his conduct compromised sources and methods used to collect foreign intelligence.
How the FBI agent’s crypto theft reached 35 investigations
Prosecutors said Yaroch used credentials stored in FBI systems to carry out about 100 fraudulent transfers connected to 35 separate investigations. The thefts began no later than December 2024.
Yaroch served in the bureau’s Boston Division from 2017 until early 2025, working on a squad investigating an adversarial nation state. He later moved to the Counterintelligence and Espionage Division, where he could access systems containing cryptocurrency credentials gathered during investigations.
The targeted wallets belonged to subjects of other investigations and nation-state actors. They also included at least one FBI-created wallet used in an operation, prosecutors said.
To conceal where the funds came from, Yaroch exchanged the stolen assets for other cryptocurrencies and routed them through additional transactions. He spent part of the proceeds on credit card bills, car payments and other loans.
A confession understated the scale of the theft
Yaroch initially admitted to considerably fewer transfers and a smaller sum than those described in his guilty plea. An FBI affidavit says he first told investigators about 10 to 12 transfers totaling less than $1 million.
On July 29, he broke down while speaking to a former colleague in the Justice Department’s National Security Division, describing “very poor decisions” involving cryptocurrency wallets. He subsequently reported himself to FBI headquarters.
Yaroch told the bureau he was frustrated that it “could not or would not act” against an adversary’s cryptocurrency accounts and had chosen to “take matters into his own hands,” according to the affidavit.
Agents searched his home two days later. They seized a Trezor hardware wallet, three passports and a paper containing seed phrases.
The affidavit placed his Kraken balance at about $188,600, largely in U.S. dollars and USDC, alongside smaller holdings of Squid (QUID) and Bitcoin. Another $933,800 was in Suilend, a lending protocol on the Sui blockchain that he accessed using the Slush wallet app.
Yaroch told agents he picked Suilend “simply because he liked that the logo was a water droplet.” Agents moved about $925,000 from those accounts into government-controlled wallets. Approximately $165,600 held in dollars on Kraken required a different transfer method, the affidavit said.
Portugal plans and a scheduled sentencing
Prosecutors said Yaroch also explored relocating to the European Union, asking ChatGPT about investment profits and places to live. After the chatbot suggested purchasing a Portuguese vineyard, he authorized lawyers in Portugal to obtain a tax identification number on his behalf.
He had arranged travel to Portugal in September. His planning included giving the Portuguese lawyers power of attorney.
The former FBI agent’s crypto theft resulted in guilty pleas to wire fraud and money laundering. Yaroch faces up to 20 years in prison, with sentencing scheduled for March 4, 2027.
Article produced with the assistance of artificial intelligence and reviewed by the editorial team.
