.png){kind=logo}
Former FBI supervisory special agent Patrick Steven Yaroch has been arrested after allegedly stealing nearly $1 million in cryptocurrency from digital wallets connected to an investigation involving a foreign adversary. According to court records, prosecutors alleged that Yaroch used privileged information obtained through FBI systems to access the wallets and transfer digital assets into accounts under his control. The FBI fired and arrested him on July 31, 2026, after opening an internal investigation into the allegations.
Yaroch worked as a supervisory special agent in the FBI's Counterintelligence and Espionage Division and previously served in its Boston office. His responsibilities gave him access to sensitive information involving cryptocurrency accounts monitored as part of national security investigations.
He told a Justice Department employee that he became “frustrated” that the FBI “could not or would not act against adversarial cryptocurrency accounts,” according to court documents. Yaroch is reported to have said he was upset he could not do more to disrupt cryptocurrency use by an adversarial nation during an investigation.
Yaroch said he made some very poor decisions, according to an FBI affidavit: “Yaroch said that he went into FBI systems and found keys needed to transfer money from wallets to himself.”
Court documents allege that Yaroch established a personal cryptocurrency wallet in late 2024 and obtained passphrases or other wallet-access information through FBI databases. He allegedly completed around 10 to 12 transfers beginning in late 2024 or early 2025, moving cryptocurrency into wallets he controlled.
Federal agents later searched Yaroch's home in Ashburn, Virginia, where investigators recovered devices, a hardware wallet and handwritten information believed to contain cryptocurrency seed phrases. Authorities ultimately transferred approximately $925,000 in cryptocurrency from accounts under his control into government-controlled wallets.
Also Read: Canada Proposes Nationwide Ban On Crypto ATMs Amid Rising Fraud Concerns
Investigators also discovered conversations on Yaroch's phone in which he explored ways to invest or manage around $1 million and considered relocating overseas. Records recovered during the investigation reportedly included material connected to Portugal and plans for international travel.
“The individual has since been fired from the Bureau. We hold our employees to the highest ethical standards, and this conduct is not tolerated at the FBI,” an FBI spokesperson said. “We are conducting a thorough investigation in the aftermath, and as this is an ongoing matter, we will have no further comment.”
Authorities said Yaroch eventually disclosed his actions to a former colleague and contacted government officials about his conduct. He now faces federal charges related to interstate transportation of stolen property and receipt of stolen property. The allegations remain unproven, and the criminal case is ongoing.
