Key Takeaways
- Former FBI agent Patrick Steven Yaroch pleaded guilty to stealing $2.47 million in cryptocurrency through approximately 100 unauthorized transfers involving wallets tied to 35 FBI investigations.
- Yaroch laundered the stolen funds through cryptocurrency transactions, used proceeds to pay personal debts, and explored relocating to Portugal, including plans to purchase a vineyard.
- The thefts compromised sensitive FBI investigations and intelligence sources. Yaroch faces up to 20 years in prison, with sentencing scheduled for March 4, 2027.
Ex-FBI Agent Swipes Crypto Across 35 Investigations
Patrick Steven Yaroch, a former FBI counterintelligence agent from Ashburn, Virginia, pleaded guilty Thursday to wire fraud and money laundering, according to the Justice Department.
Prosecutors said Yaroch carried out approximately 100 unauthorized cryptocurrency transfers involving credentials associated with 35 separate FBI investigations, collecting $2,474,380.66 in illicit proceeds. The thefts began no later than Dec. 2024 and involved wallets belonging to criminal suspects, foreign adversaries, and at least one wallet created by the FBI for an undercover operation.
Yaroch worked in the FBI’s Boston Division from 2017 until early 2025, investigating an adversarial nation-state, before joining the agency’s Counterintelligence and Espionage Division. His assignments gave him access to sensitive information, including cryptocurrency wallet credentials gathered during federal investigations.
After stealing the funds, Yaroch converted them into other cryptocurrencies and moved them through additional transactions to disguise their origins and ownership. Between Nov. 2025 and Jan. 2026, he transferred approximately $93,082 into one of his accounts and subsequently moved funds between other accounts to pay credit card bills, car payments, and other debts.
Investigators also uncovered plans to use the stolen proceeds to establish a new life overseas.
According to prosecutors, Yaroch consulted ChatGPT about investment strategies and potential places to live in the European Union. After receiving a suggestion to purchase a vineyard in Portugal, he authorized Portuguese lawyers in June 2026 to obtain a tax identification number and handle other administrative matters on his behalf. He subsequently arranged to travel to Portugal in September.
The guilty plea follows Yaroch’s arrest on July 31, which Bitcoin.com News reported in August.
At the time, authorities alleged he had stolen approximately $1 million from cryptocurrency wallets belonging to a foreign intelligence target after accessing their recovery phrases. Investigators said Yaroch had voluntarily approached government officials and confessed to mishandling cryptocurrency wallets.
The earlier investigation identified funds held through the Kraken exchange and the decentralized lending platform Suilend. Authorities reported recovering approximately $925,426 in cryptocurrency during the initial investigation. The latest disclosure establishes that the scheme was substantially larger than originally reported, involving dozens of separate FBI investigations rather than a single foreign intelligence target.
Federal prosecutors said Yaroch’s conduct had consequences beyond the financial losses, disrupting investigations involving criminal organizations and hostile foreign governments. According to the Justice Department, his actions also exposed sensitive FBI intelligence-gathering techniques and compromised sources used in criminal and national security investigations.
The case adds to previous incidents involving law enforcement personnel who misappropriated cryptocurrency obtained during investigations. Bitcoin.com News reported in October that former British National Crime Agency officer Paul Chowles was ordered to repay approximately $2.38 million after stealing 50 bitcoin seized during an investigation of the Silk Road 2.0 marketplace. Chowles had previously received a five-and-a-half-year prison sentence.
Yaroch is scheduled to be sentenced on March 4, 2027, and faces a maximum prison term of 20 years. U.S. District Judge Patricia Tolliver Giles will determine his sentence under federal sentencing guidelines and other applicable factors.
