ByJERUSALEM POST STAFF

AUGUST 4, 2026 11:56

A former FBI supervisory special agent faces charges in Virginia after allegedly exploiting internal systems to steal close to one million dollars in cryptocurrency from wallets tied to a Russian investigative target, NBC News reported on Monday.

Patrick Steven Yaroch was charged via criminal complaint with interstate transportation of stolen goods, securities, and monies, plus receipt of stolen goods, securities, and monies. The complaint spans alleged actions from at least January 1, 2025, through July 31, 2026.

Yaroch served in the FBI's Boston Division from roughly 2017 to 2025 on a national security squad probing an individual from an adversarial nation, identified in the affidavit as Russia. He later joined the Counterintelligence and Espionage Division at headquarters and maintained a Top Secret clearance with access to sensitive compartmented information.

The affidavit states Yaroch grew frustrated in late 2024 when the FBI could not or would not block the target's cryptocurrency use. He reportedly searched internal records for wallet details, memorized the seed phrases required for access, set up a personal wallet, and moved funds into it roughly 10 to 12 times.

Yaroch allegedly informed FBI staff that he chose to handle the matter himself. He noted the transferred cryptocurrency had been mixed with his personal holdings and investment profits, complicating exact calculations, though he estimated the amount taken was under one million dollars.

Investigators follow cryptocurrency movements

Investigators determined Yaroch transferred about 1.02 million dollars around July 23 into an account on Suilend, a decentralized lending platform. An initial check showed a balance of roughly 933,756 dollars there, while his Kraken account held about 188,570 dollars, mostly in US dollars and the USDC stablecoin.

These amounts may not reflect the exact sum taken, as the affidavit notes Yaroch combined the cryptocurrency with personal funds and digital asset values change. He told investigators he placed the assets in Suilend to generate interest and selected the platform due to its water-droplet logo.

On July 31, Yaroch signed a consent form permitting seizure of funds from accounts he controlled. The FBI moved cryptocurrency valued at about 925,426 dollars into government wallets. Roughly 165,582 dollars in US currency stayed in the Kraken account since it could not transfer directly to a government crypto wallet.

The probe started after Yaroch reached out to a Justice Department employee on July 28 seeking a private meeting. During the meeting the next day, he reportedly broke down and confessed to poor choices involving cryptocurrency wallets.

Yaroch stated the shame was eating him up inside and he wanted to get it off his chest, per the affidavit. The Justice Department employee urged him to hire counsel and report the conduct right away. Yaroch then contacted FBI headquarters and disclosed the mishandling of the cryptocurrency.

Yaroch relied on AI during the scheme

Agents searching Yaroch's home in Ashburn, Virginia, seized a hardware wallet, computers, phones, and a handwritten note with presumed cryptocurrency seed phrases. They also examined phone chats where he queried ChatGPT on investing or spending one million dollars and relocating to an EU country.

The phone showed plans for a round-trip family trip to Portugal in September. Agents located documents giving Portuguese lawyers power of attorney to secure a local tax ID for Yaroch. He told investigators he had no plans to move funds to Portugal and the trip was arranged to visit friends.

The FBI placed Yaroch on administrative leave July 29, dismissed him July 31, and arrested him at home later that day once the cryptocurrency reached government wallets.

The bureau stated it responded swiftly upon learning of the allegations and emphasized that such conduct is not tolerated at the FBI. No attorney for Yaroch appeared in the reviewed court records.