A former supervisory FBI agent has been charged with stealing more than $900,000 in cryptocurrency from accounts linked to Russian criminal targets, according to federal court documents. Patrick Steven Yaroch, who was fired by the FBI last week, now faces two counts: interstate transportation of stolen goods and receipt of stolen goods.
The charges stem from a scheme in which Yaroch allegedly transferred funds from what investigators described as “adversarial” cryptocurrency wallets tied to overseas criminal operations into his personal holdings. In an affidavit, Yaroch admitted to the thefts during a voluntary meeting with FBI headquarters personnel, saying he had “screwed up” and wanted to “get it off his chest.”
According to two officials familiar with the matter, the targeted accounts were connected to Russian entities, a detail first reported by NBC News. Yaroch reportedly told investigators he became “frustrated when he could not do more to disrupt this individual’s use of cryptocurrency,” referring to the person from whom he took the funds.
The affidavit reveals that Yaroch conducted between 10 and 12 transfers starting in late 2024, using memorized passphrases to access the accounts. He admitted he did not know the exact total because the stolen assets were mixed with his personal cryptocurrency. He told federal agents that the actions were “eating him up inside.”
Yaroch has been fully cooperative with investigators, allowing them to use his biometric data to unlock his devices. A search warrant authorized by U.S. Magistrate Judge William B. Porter on July 30 led to a search of his home, vehicle, and person.
During the investigation, agents discovered ChatGPT logs on Yaroch’s phone in which he asked the AI chatbot for advice on moving abroad with a large sum of money. “If you had a bucket of money (around $1 million) and you wanted to leave the USA and become a resident or citizen of an EU country, what would you do?” he queried.
Investigators also found that Yaroch had planned a September trip to Portugal with his family, ostensibly to meet friends. He acknowledged that he might no longer be able to travel but hoped his family could still go. The case highlights ongoing concerns about insider threats within federal law enforcement, especially regarding cryptocurrency and international financial crimes.
Yaroch’s arrest adds to a series of recent controversies involving federal agents and digital assets. As the Justice Department intensifies its focus on crypto-related crimes, this case underscores the need for robust oversight. For more on related legal battles, see the latest on the Blanche deal and the federal ruling on ICE agents.
The FBI has not commented beyond confirming Yaroch’s termination. His next court appearance has not yet been scheduled. The case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia.
