Key Highlights
- Former FBI agent Patrick Steven Yaroch pleaded guilty to wire fraud and money laundering after stealing approximately $2.47 million in cryptocurrency.
- Prosecutors said he used credentials connected to 35 FBI investigations to carry out around 100 unauthorized transfers.
- Investigators traced funds through Kraken and Suilend, transferring approximately $925,426 in cryptocurrency to government-controlled wallets.
A former Federal Bureau of Investigation (FBI) agent has pleaded guilty to stealing approximately $2.47 million in cryptocurrency by using credentials he accessed through his government work.
In an official release dated November 5, the US Department of Justice (DOJ) said that Patrick Steven Yaroch, 37, of Ashburn, Virginia, pleaded guilty to wire fraud and money laundering. He used his access to FBI systems to obtain cryptocurrency credentials collected during federal investigations and transfer funds from wallets without authorization.
According to court documents, Yaroch carried out approximately 100 fraudulent transfers using credentials associated with 35 separate FBI investigations. The wallets included those controlled by subjects of investigations, adversarial nation-state actors, and at least one wallet created by the FBI for an operation.
The DOJ said Yaroch obtained approximately $2,474,380.66 through the scheme. The guilty plea followed an investigation that began after he disclosed his conduct to a former colleague in July 2026.
How Yaroch used FBI access to steal crypto
Yaroch worked at the FBI’s Boston Division from 2017 through early 2025 on an investigative squad focused on an adversarial nation-state. From February 2025 until July 31, 2026, he worked in the FBI’s Counterintelligence and Espionage Division.
The DOJ said Yaroch began using the credentials to make unauthorized transfers no later than December 2024. An affidavit filed in the Eastern District of Virginia on August 1 provides an earlier account of the activity. It said Yaroch told a former Department of Justice employee on July 29 that he had accessed FBI systems to find the keys needed to transfer cryptocurrency from wallets into his own accounts.
During the conversation, Yaroch reportedly said he began making transfers in late 2024 or early 2025 while working at the FBI’s Boston office. He initially described 10 to 12 transfers and said he was frustrated by the agency’s inability to disrupt an adversarial actor’s use of cryptocurrency.
The affidavit said the former colleague advised him to seek legal counsel and report the conduct. Yaroch later contacted FBI headquarters and submitted an online disclosure to the agency’s Security Division.
He was placed on administrative leave on July 29, and the FBI terminated his employment on July 31.
Investigators traced funds through Kraken and Suilend
The August affidavit describes how investigators examined Yaroch’s cryptocurrency accounts after executing search warrants at his residence, person and vehicle on July 31.
During the search, agents seized electronic devices, a Trezor hardware wallet, documents related to a power of attorney in Portugal and a handwritten note containing what investigators believed were cryptocurrency seed phrases.
Yaroch told investigators that he used the Kraken application on his phone to access his cryptocurrency accounts. He also said he had combined personal funds and stolen cryptocurrency in the same wallet.
A preliminary review showed approximately $188,570.58 in his Kraken account. This included about $165,582 in US dollars and $17,988 in USDC, along with smaller balances.
Investigators identified a transfer of approximately $1.02 million made on July 23, 2026, to a service they later identified as Suilend. The affidavit said Yaroch used the Slush application to access the account and stored funds there to earn interest.
A preliminary review showed approximately $933,756.73 in the Suilend account, with most of the balance invested.
On July 31, Yaroch signed a consent form allowing investigators to transfer funds from several cryptocurrency wallets and accounts under his control to government-controlled wallets. The FBI moved approximately $925,426.07 in cryptocurrency through those transfers. Some funds remained in his Kraken account because they were held in US dollars and could not be transferred in the same way.
The account balances were preliminary figures recorded during the July search. The DOJ later established the total proceeds from the scheme at approximately $2.47 million.
DOJ describes transfers and use of stolen funds
After obtaining the cryptocurrency, Yaroch exchanged it for other digital assets and moved the funds through additional financial transactions to conceal their source, nature, and ownership, according to the DOJ.
Between November 25, 2025, and January 13, 2026, he transferred approximately $93,082 to one of his accounts before moving the money between other accounts.
He then used funds from those accounts to make payments toward personal debts, including credit card bills, car payments, and other loans.
The agreed statement of facts said Yaroch intended to use the proceeds for additional purchases and to finance a new life abroad.
ChatGPT searches and documents pointed to Portugal plans
The August affidavit detailed Yaroch’s efforts to explore relocation to Europe. It provides details of the questions he entered into ChatGPT.
On May 28, 2026, Yaroch asked ChatGPT how to invest or spend $1 million to maximize profits and returns. On June 4, he asked what it would take to leave the United States and become a resident or citizen of an EU country with around $1 million.
The affidavit said ChatGPT discussed Portugal as a possible option based on his circumstances and referred to his interest in a vineyard or agricultural lifestyle. On June 26, he sought help drafting an email about a job opportunity and the possibility of living in Greece.
The affidavit also described steps Yaroch took to establish legal and financial arrangements in Portugal. On June 15, 2026, he gave power of attorney to lawyers in the country, authorizing them to represent him before the Portuguese Tax and Customs Authority, obtain a tax identification number and secure access to his financial portal.
Investigators found travel arrangements for Yaroch, his wife and child to travel from Washington to Portugal in September 2026. The affidavit also listed unreported foreign trips to Germany in May and Grenada from June 30 to July 5, as well as his return from Portugal on May 25. The FBI requires employees to report foreign travel.
DOJ says theft compromised FBI investigations
According to the agreed statement of facts, the theft affected multiple FBI investigations involving criminal groups and nation-state adversaries, compromising the agency’s ability to conduct investigations and protect public safety and national security.
It also exposed FBI sources and methods used in foreign intelligence collection and criminal investigations.
The DOJ announcement identified Theophani K. Stamos, First Assistant US Attorney for the Eastern District of Virginia, and Daniel S. Wierzbicki, Special Agent in Charge of the FBI Washington Field Office’s Counterintelligence Division, as officials involved in the case announcement.
US District Judge Patricia Tolliver Giles accepted Yaroch’s guilty plea.
Sentencing scheduled for March 2027
Yaroch is scheduled to be sentenced on March 4, 2027. He faces a maximum sentence of 20 years in prison for the offenses. The judge will determine the sentence after considering the US Sentencing Guidelines and other statutory factors.
Assistant US Attorneys Kathleen Robeson and Russell Carlberg are prosecuting the case. The DOJ’s National Security Cyber Section and the department’s Office of the Inspector General Mid-Atlantic Region assisted with the investigation.
The case is listed in the Eastern District of Virginia under Case No. 1:26-CR-208.
Former Epoch Times CFO pleaded guilty in laundering case
In a separate case reported by The Crypto Times on July 10, 2026, Weidong “Bill” Guan, former chief financial officer of The Epoch Times, pleaded guilty to a $67 million cryptocurrency money laundering scheme.
Guan admitted his role in a scheme that used cryptocurrency to launder fraudulently obtained unemployment benefits through the media company’s bank accounts.
Moreover, on October 3, 2026, New York resident Xuehai Sun pleaded guilty to his role in a $5 million fraud scheme targeting older adults.
Sun admitted to coordinating couriers who collected cash and gold from elderly victims after they were deceived into transferring their assets. Prosecutors identified about 300 victims across at least 37 states, with known losses exceeding $5 million.
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