FBI agent drains crypto wallets tied to 35 investigations, steals $2.47 million and plans Portugal escape
Former FBI agent Patrick Steven Yaroch pleaded guilty to wire fraud and money laundering after stealing $2.47 million in cryptocurrency from 35 investigations.
The US Department of Justice disclosed on Nov. 5 that Yaroch, 37, compromised federal investigations into criminal organizations and foreign adversaries by using credentials from about 100 unauthorized transfers tied to 35 separate FBI cases.
His actions exposed a significant internal security failure at the FBI, where an agent entrusted with protecting national security turned investigative information into personal enrichment.
Investigative Access Exploited
Yaroch worked in the FBI's Boston Division from 2017 until early 2025, investigating threats involving a foreign adversary before joining the bureau's Counterintelligence and Espionage Division.
According to prosecutors, he searched bureau records for crypto wallets associated with foreign adversaries, memorized their recovery credentials, and transferred funds into a personal wallet, including from at least one FBI operational wallet.
He initially told investigators that frustration with the FBI's inability to disrupt certain adversarial crypto accounts had led him to take matters into his own hands.
Money Laundering and Escape Plan
After stealing the cryptocurrency, Yaroch converted portions into other digital assets and moved funds through additional transactions to conceal their origins. Between November 2025 and January 2026, he transferred approximately $93,082 into an account to cover credit card bills, vehicle payments, and other debts.
The former agent planned to use the proceeds to establish a new life in Europe, turning to ChatGPT for advice on investing approximately $1 million. The AI recommended Portugal as a destination, leading Yaroch to grant power of attorney to Portuguese lawyers on June 15.
Investigation and Recovery
Yaroch's plans unraveled in July when he voluntarily disclosed his cryptocurrency thefts to Justice Department personnel. The FBI terminated his employment on July 31, and investigators recovered approximately $925,426 in cryptocurrency from his accounts that day.
An additional $165,582 remained in dollars at Kraken. The Justice Department stated his actions interfered with the FBI's ability to protect public safety and national security while compromising sources and methods used in criminal investigations and foreign intelligence collection.
Yaroch is scheduled to be sentenced on March 4, 2027, and faces up to 20 years in prison. Prosecutors did not identify the affected countries or investigations, leaving the full extent of the intelligence damage undisclosed.
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