CryptoSlate
Former FBI agent Patrick Steven Yaroch pleaded guilty to wire fraud and money laundering after stealing $2.47 million in cryptocurrency using credentials obtained through federal investigations. Prosecutors said he made about 100 unauthorized transfers tied to 35 FBI investigations, including from a wallet the bureau created for an operation.
Yaroch used access to investigative systems to obtain wallet recovery credentials and transferred funds to a personal wallet. The thefts began no later than December 2024, before his move to the FBI's Counterintelligence and Espionage Division.
Why it matters
The Justice Department said the scheme compromised investigations involving criminal organizations and foreign adversaries, as well as sensitive sources and intelligence-gathering methods. Prosecutors did not identify the affected countries or investigations.
The case highlights an insider threat to cryptocurrency held in investigative wallets: access to recovery credentials can give an individual control over funds. Yaroch also converted some of the stolen crypto into other digital assets and moved funds through additional transactions to conceal their origins, prosecutors said.
Market impact
Investigators recovered approximately $925,426 in cryptocurrency from accounts Yaroch controlled when the FBI terminated his employment on July 31. Another $165,582 remained in dollars at Kraken, according to an affidavit.
Court documents also described plans to relocate to Portugal. Yaroch is scheduled for sentencing on March 4, 2027, and faces up to 20 years in prison.
Frequently asked questions
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How did Yaroch access the cryptocurrency?
Yaroch used access to FBI investigative systems to obtain wallet recovery credentials, then transferred funds to a personal wallet.
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What kinds of investigations were affected?
Prosecutors said the thefts compromised investigations involving criminal organizations and foreign adversaries, as well as sensitive sources and intelligence-gathering methods.
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How much was recovered from accounts Yaroch controlled?
Investigators recovered approximately $925,426 in cryptocurrency when the FBI terminated his employment. Another $165,582 remained in dollars at Kraken, according to an affidavit.
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What did Yaroch do with the stolen crypto?
Prosecutors said he converted some of it into other digital assets and moved funds through additional transactions to conceal their origins.
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When is Yaroch scheduled to be sentenced?
Yaroch is scheduled for sentencing on March 4, 2027, and faces up to 20 years in prison.
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