Former FBI agent admits to stealing $2.47 million in crypto

Patrick Steven Yaroch, 37, pleaded guilty Thursday to wire fraud and money laundering in Alexandria federal court. The former counterintelligence agent embezzled $2,474,380.66 in crypto from FBI systems, using credentials seized in 35 investigations.

Confidential access transformed into a personal crypto wallet

The former agent knew the inner workings of the institution well. Between 2017 and early 2025, he worked in the Boston Division, as part of a team dealing with an opposing nation-state. In February 2025, he joined the counterintelligence division. He could then consult systems containing the crypto identifiers recovered by the FBI.

This access notably gave him the possibility of opening wallets belonging to people targeted by investigations, to foreign state actors and even to a wallet created by the FBI for an operation.

Yaroch had, however, started to exploit this information in December 2024, before his transfer. His process didn’t vary much: he transferred the cryptos, exchanged them for other digital assets, then multiple movements between different accounts to complicate tracking the funds. A technique reminiscent of certain money laundering cases involving hackers and crypto mixing services.

In total, investigators identified approximately 100 transfers spread across 35 files, for an amount of $2,474,380.66.

But the damage far exceeds the amount stolen. Yaroch’s operations also compromised investigations targeting criminal groups and foreign states. In particular, they exposed sources and methods used by the FBI to collect intelligence.

From whitewashing to a vineyard project in Portugal

Yaroch didn’t just move the funds around. Between November 25, 2025 and January 13, 2026, he transferred approximately $93,082 to an account, before distributing this money between several expenses: credit cards, car and loan repayments.

For the rest, he was considering a change of life. According to court documents released by the US Department of Justicehe even asked ChatGPT about the best ways to grow your money and which country in the European Union to settle in.

The chatbot’s suggestion? Buy a vineyard in Portugal. A rather ambitious reconversion project for someone who had just embezzled millions of dollars.

He then began to prepare for his installation. On June 15, 2026, he gave power of attorney to Portuguese lawyers so that they could obtain for him a tax identification number and access to his financial portal. He was also planning a trip in September 2026.

A theft that also compromised federal investigations

Authorities announced the case through Theophani K. Stamos, first assistant federal attorney for the Eastern District of Virginia, and Daniel S. Wierzbicki, chief of counterintelligence in the Washington office. Judge Patricia Tolliver Giles accepted the guilty plea.

This was not the first time that Yaroch admitted illegal transfers. In August, he had already admitted to moving around a million dollars without authorization. The investigation ultimately revealed an amount two and a half times higher.

Beyond fraud, this case raises an embarrassing question about the management of digital assets seized by the authorities. Having the private keys to a wallet is not enough: you still need to control access and prevent those who investigate from becoming suspects themselves.

Yaroch now faces up to 20 years in prison. A case which reminds us that the security and custody of digital assets do not rely only on technology, but also on the trust placed in those who handle it.