A former FBI agent has pleaded guilty to stealing approximately $2.47 million worth of cryptocurrency from wallets linked to bureau investigations. Patrick Steven Yaroch pleaded guilty to charges of wire fraud and money laundering, the U.S. Department of Justice said.
According to court documents, Yaroch used passwords and key phrases obtained through FBI case-management and investigative-data exchange systems. He used them to transfer funds from wallets belonging to individuals under investigation, entities linked to hostile states, and at least one wallet created by the FBI itself for an operational purpose.
The scheme involved data linked to 35 separate investigations. Approximately 100 fraudulent transfers were made, and the illegally obtained funds amounted to $2,474,380.66. “As part of the wire fraud scheme, Yaroch carried out approximately 100 fraudulent transfers using data linked to 35 separate FBI investigations,” the U.S. Department of Justice said.
He used the money for personal expenses
After transferring the cryptocurrency, Yaroch exchanged it for other digital assets in order to conceal the origin, nature and ownership of the funds. Between November 25, 2025, and January 13, 2026, he transferred approximately $93,082 to one of his own accounts, after which he moved the money between other accounts belonging to him.
Some of the money was used to make payments on credit cards, a car and other loans. According to prosecutors, Yaroch also intended to use the funds to start a new life outside the United States.
He planned to move with his family to Portugal in September 2026. Before that, he used ChatGPT to seek information about a European Union country in which he could settle, and he authorized Portuguese lawyers to represent him before the tax authorities and obtain a tax identification number. One of the ideas discussed was buying a vineyard.
FBI investigations were compromised
Yaroch worked at the FBI’s Boston office from 2017 until early 2025, and from February 2025 to July 2026 he was a supervisory special agent in the bureau headquarters’ counterintelligence and espionage division.
He self-reported the theft to Justice Department and FBI employees on July 29, 2026. That same day, he was placed on administrative leave, and on July 31 he was fired and arrested at his home.
The Department of Justice said his actions compromised numerous investigations into criminal groups and entities linked to hostile states. Sources, methods and the ability of FBI employees to perform their public- and national-security functions were also affected.
U.S. District Judge Patricia Tolliver Giles accepted Yaroch’s guilty plea on November 5, 2026. Sentencing is scheduled for March 4, 2027. The Department of Justice said the final sentence will be determined by the court after considering the federal sentencing guidelines and other statutory factors. According to BleepingComputer, each of the two charges carries a maximum sentence of up to 20 years in prison.
Sources: bleepingcomputer.com, justice.gov