Former FBI supervisor Patrick Steven Yaroch has been charged with stealing $1 million in crypto from the FBI after gaining access to internal systems.
A former FBI supervisor has been accused of stealing nearly $1 million in cryptocurrency from wallets tied to an active government investigation, in one of the most unusual insider cases involving digital assets.
Prosecutors said that FBI agent Patrick Steven Yaroch abused his access to FBI systems to move crypto into wallets he personally controlled before later admitting to the scheme.
According to a criminal complaint filed in a Virginia federal court, Yaroch used his access to internal FBI systems to obtain wallet recovery credentials connected to cryptocurrency that had been seized during an investigation involving an adversarial foreign country.
Instead of using them for official work, he allegedly moved the funds into wallets he controlled. Investigators say he made around 10 unauthorized transfers starting in late 2024, stealing nearly $1 million.
Court documents also state that he mixed the stolen crypto with his own holdings.
Investigators say Yaroch didn't just keep the stolen crypto in one place. He allegedly deposited some of it into Suilend, a lending platform on the Sui blockchain, to earn extra returns.
Authorities also traced transactions through Kraken and a Slush wallet, helping them follow the movement of the funds.
Notably, on July 29, Yaroch admitted what he had done to Justice Department and FBI officials.
He reportedly said he acted out of frustration and that the guilt had been "eating him up inside."
After his confession, agents searched his Virginia home and seized crypto wallets, recovery phrases, computers, phones, and other digital devices linked to the case.
After the search, Yaroch signed a consent form allowing investigators to access wallets under his control.
Using those credentials, authorities transferred approximately $925,426 worth of cryptocurrency back into government-controlled wallets. Court filings say additional funds remained on a crypto exchange because they could not immediately be moved on-chain.
While investigators recovered most of the missing assets, prosecutors are yet to confirm whether the entire amount has been returned.
The complaint also alleges Yaroch had been preparing to relocate overseas.
Searches of his devices reportedly uncovered conversations with an artificial intelligence chatbot asking how someone with around $1 million could move to the European Union and establish residency. The chatbot allegedly suggested Portugal as a possible destination.
Investigators also found documents showing Yaroch had obtained power of attorney for lawyers in Lisbon to secure a Portuguese tax identification number.
In addition, authorities said he had booked a family trip to Portugal for September and had previously made unreported trips to Germany and Grenada, violating FBI reporting requirements.
Yaroch was placed on administrative leave on July 29 before being officially terminated by the FBI on July 31.
Federal prosecutors have charged him with interstate transportation of stolen property and receipt of stolen property. The criminal complaint does not accuse him of working with the foreign entities connected to the investigation or providing them with any information.
The case now has now moved into the federal court system, where prosecutors will attempt to prove that one of the FBI's own senior agents used privileged access to steal cryptocurrency that had already been secured by the U.S. government.
If convicted, Yaroch could face significant prison time while the Justice Department continues tracing any remaining digital assets connected to the alleged theft.
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