Patrick Steven Yaroch stood in Alexandria Federal Court admitting to the theft of approximately $2.47 million in crypto assets. The 37-year-old former FBI agent from Ashburn, Virginia, pleaded guilty to wire fraud and money laundering charges.
The case did not stem from an external hack, but rather from an abuse of authority involving dozens of case files within the bureau.
Internal Access to 35 Seized Cases
Yaroch served in the FBI’s Boston Division from 2017 until early 2025 handling foreign adversary investigations, before being transferred to the Counterintelligence and Espionage Division. This new assignment granted him access to internal bureau systems storing seized crypto wallet credentials from 35 different investigations.
Yaroch exploited that access starting at least in December 2024. The targets he drained included wallets of investigation targets, hostile state actors, and at least one FBI operational bait wallet. Yaroch reportedly conducted around 100 unauthorized transfers using the seized credentials, then swapped the funds into various other cryptocurrencies to conceal transaction trails.
He used the stolen proceeds for personal expenses: paying off credit card bills, making car payments, and settling various other debt obligations.
ChatGPT Advice and Plans for Portugal
Amid his efforts to conceal the illicit funds, Yaroch consulted the AI chatbot ChatGPT. He inquired about ways to maximize profits and ideal places to live in the European Union. From that consultation, the artificial intelligence system suggested he purchase a vineyard in Portugal.
Yaroch followed up on the advice by granting power of attorney to a lawyer in Portugal to obtain a Tax Identification Number (NIF). He had even planned a flight to Portugal for September 2026.
Tearful Confession and Fund Recovery
However, the escape plan unraveled before September arrived. On July 29, 2026, Yaroch decided to turn himself in. Before his former colleagues at the Department of Justice (DOJ) National Security Division, he wept and expressed frustration, claiming he felt the FBI was not acting aggressively enough against adversary accounts.
Government investigators subsequently recovered approximately $925,000 back into a government wallet. However, a balance of around $165,600 in US dollars on the Kraken exchange could not be transferred using a similar mechanism.
Yaroch now faces a maximum sentence of up to 20 years in prison, with sentencing scheduled for March 4, 2027. The dream of buying a European vineyard vanished inside the federal courtroom, replaced by legal accountability for the dozens of seized wallets he drained from within the bureau.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
