Former FBI Agent Faces Theft Charges Involving Crypto Worth $1M

A former supervisory special agent with the FBI has been accused of stealing close to $1 million in crypto from digital wallets connected to federal counterintelligence investigations, according to newly filed court records. The documents also state that he used ChatGPT to seek financial guidance on managing the money and explored options for moving abroad.

Patrick Steven Yaroch was charged on Friday with interstate transportation and receipt of stolen property. The alleged misconduct took place from the beginning of 2025 through July 2026 while he served in the FBI’s Counterintelligence and Espionage unit. During that time, he reportedly held a Top Secret security clearance.

Court filings detail a meeting on July 28 when Yaroch contacted a Justice Department employee through the encrypted messaging platform Signal and asked for a private discussion regarding personal issues. According to prosecutors, the conversation took place at FBI headquarters, where Yaroch became emotional and explained what had happened.

Authorities say Yaroch admitted using FBI systems to obtain crypto wallet recovery phrases linked to investigations involving an unidentified foreign adversary. Investigators allege he memorized the recovery credentials, established crypto wallets under his control, and transferred funds from government-related wallets on roughly 10 occasions. He reportedly told investigators the value of the assets eventually approached $1 million.

Searches carried out at Yaroch’s residence and on his electronic devices uncovered additional evidence, prosecutors said. Agents recovered a Trezor hardware wallet along with handwritten notes containing crypto recovery phrases.

Court documents further state that investigators located a Kraken account holding roughly $188,570. The account allegedly contained nearly $18,000 in USDC and approximately $166,000 in USD, plus smaller amounts of several cryptos.

The affidavit further states that investigators reviewed conversations stored on Yaroch’s phone involving ChatGPT. On May 28, prosecutors say he asked how someone with $1 million could invest or use the money to generate the highest possible returns.

Days later, another conversation allegedly focused on how an individual with $1 million could leave the U.S. and obtain residency or citizenship in a European Union member state. Additional searches referenced visa requirements for connecting flights through Turkey and requested assistance drafting a follow-up email concerning a potential job opportunity in Greece.

Authorities also say they discovered records related to a planned family vacation to Portugal, documents granting power of attorney connected to Portugal, and evidence of foreign travel that prosecutors described as previously undisclosed. Officials contend that the combination of evidence and Yaroch’s statements provided sufficient probable cause to support his arrest on July 31.

According to the complaint, when agents questioned him about the Portugal paperwork, Yaroch denied any intention of transferring money there. He reportedly explained that his family had planned to visit friends in Portugal in September 2026 and expressed hope that his family would still be able to make the trip despite his legal situation.

The crypto industry, including established firms like BitMine Immersion Technologies Inc. (NYSE American: BMNR), is likely to see this case as further proof that wrongdoers cannot use crypto and not be caught.

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