A former FBI agent has been charged with stealing nearly $1 million in cryptocurrency, allegedly diverting funds from FBI investigations.
Overview
- A former FBI supervisory special agent has been charged with embezzling nearly $1 million in cryptocurrency.
- Prosecutors allege he misappropriated funds from FBI-related wallets to his personal accounts.
- Court documents indicate he sought investment advice from ChatGPT regarding the stolen funds and plans to relocate to Europe.
Patrick Steven Yaroch, a former supervisory special agent at the FBI, faces charges for allegedly embezzling close to $1 million in cryptocurrency connected to FBI counterintelligence investigations. Reports suggest he consulted ChatGPT for investment strategies and guidance on moving abroad after the theft.
On Friday, Yaroch was charged with interstate transport of stolen property. Prosecutors claim that the thefts occurred between early 2025 and July 2026 while he was part of the FBI's Counterintelligence and Espionage Division, where he held a Top Secret security clearance.
Yaroch reportedly communicated with a Department of Justice employee via Signal on July 28, 2026, seeking a meeting to discuss personal matters. According to the complaint, he became emotional while recounting his situation during their meeting at FBI headquarters.
Investigators assert that Yaroch accessed FBI databases to obtain cryptocurrency wallet seed phrases linked to investigations of a foreign adversary. He memorized these phrases, created his own cryptocurrency wallet, and executed around ten transfers to accounts under his control, accumulating approximately $1 million.
Authorities found a Trezor hardware wallet and handwritten seed phrases during searches of his home and electronic devices. An affidavit revealed that agents discovered a Kraken account containing about $188,570, which included roughly $166,000 in U.S. dollars and nearly $18,000 in USDC, along with smaller amounts of Bitcoin and other cryptocurrencies.
Investigators also retrieved multiple conversations with ChatGPT from Yaroch's phone. In one exchange from May 28, he sought advice on investing or using $1 million for maximum profit. Shortly thereafter, he asked about the steps to leave the U.S. and establish residency in a European Union country. Further searches uncovered inquiries about visa requirements for Americans traveling through Turkey and assistance drafting a follow-up email regarding job opportunities in Greece.
Additionally, evidence of a planned family trip to Portugal, power-of-attorney documents related to Portugal, and previously unreported foreign travels were discovered. Prosecutors argue that this evidence, combined with Yaroch's confessions and the recovered cryptocurrency, justified his arrest on July 31.
During questioning, Yaroch acknowledged discussions with FBI agents about the power of attorney forms for Portugal, but claimed he did not intend to funnel money there. He mentioned a family trip to Portugal planned for September 2026, expressing hope that his wife and child could still attend despite his potential absence.
