A former FBI counterintelligence agent has been arrested after allegedly stealing nearly $1 million in cryptocurrency from accounts the bureau was monitoring, according to CNN. Patrick Steven Yaroch, who worked in the FBI's Counterintelligence and Espionage Division, is accused of using his access to government systems to take funds from wallets linked to a foreign adversary.
According to court documents, Yaroch became frustrated with the FBI's handling of the accounts, which sources told CNN were connected to Russia. Prosecutors allege that he set up a personal cryptocurrency wallet in late 2024, accessed FBI databases to obtain passphrases tied to the accounts, and transferred the funds through 10 to 12 separate transactions.
Investigators say the cryptocurrency was worth about $1 million, although only $925,426 was recovered after agents searched his home in Ashburn, Virginia. During the search, authorities also found a hardware wallet, handwritten seed phrases, and documents suggesting he had been planning a move abroad, including paperwork linked to Portugal.
"As soon as the FBI became aware of these allegations, we immediately took action, began an investigation, and ultimately executed an arrest warrant for this individual last week," an FBI spokesperson told CNN. "We hold our employees to the highest ethical standards, and this conduct is not tolerated at the FBI. We are conducting a thorough investigation in the aftermath, and as this is an ongoing matter, we will have no further comment."
Investigators also recovered ChatGPT conversations from Yaroch's phone. According to court records, he sought advice on how to invest or spend $1 million and asked about relocating overseas. Authorities say he later confessed to a colleague before contacting the Department of Justice, telling officials he had made poor decisions.
Bloomberg News reported that Yaroch was fired and arrested on the same day agents searched his home. He has been charged with interstate transportation of stolen goods and receipt of stolen goods. A federal magistrate judge has ordered that he be held temporarily while the case proceeds. His attorney has not publicly commented on the allegations.
