
Ex-FBI agent Patrick Steven Yaroch faces charges for allegedly stealing $1M in crypto from agency custody, using ChatGPT to plan investments.
A former FBI agent is accused of stealing roughly $1 million in cryptocurrency from a digital wallet under the federal agency's custody, according to court documents filed in a United States Court.
Patrick Steven Yaroch was charged last Friday with interstate transportation of stolen goods and receipt of stolen goods. Department of Justice prosecutors detailed that the thefts took place between early 2025 and July 2026, a period during which Yaroch worked within the FBI's Counterintelligence and Espionage Division with Top Secret security clearances.
According to court filings, Yaroch accessed internal agency systems to retrieve recovery phrases for cryptocurrency wallets seized in investigations targeting an unnamed foreign adversary. He then memorized the key phrases, created personal wallets, and executed roughly ten unauthorized transfers into accounts under his control.
Agents investigating the case searched Yaroch's residence and electronic devices. During the inspection, law enforcement officers seized a Trezor hardware cold wallet, as well as handwritten notes containing digital asset recovery phrases.
Financial records also identified an account linked to the Kraken exchange holding a total balance of $188,570 at the time of review. That balance included $166,000 in U.S. fiat currency, nearly $18,000 in the USDC stablecoin, and small fractions of Bitcoin alongside other digital assets.
Forensic analysis of the defendant's mobile phone revealed saved conversations within the ChatGPT application. Prosecution documents state that on May 28, 2026, Yaroch queried the artificial intelligence system about strategies to invest $1 million to maximize returns.
Days later, according to file data, Yaroch conducted searches related to residency and citizenship procedures in European Union countries for individuals with similar capital. The queries also covered visa requirements for layovers in Turkey and drafting emails about job opportunities and settling in Greece.
Investigators documented plans for a family trip to Portugal scheduled for September 2026, along with power-of-attorney documents linked to that country and foreign travel itineraries not previously declared to the agency.
The case took a definitive turn on July 28, 2026, when Yaroch contacted a Department of Justice colleague to request a private meeting at FBI headquarters, where he admitted to the events outlined in the indictment.
Following his arrest on July 31, 2026, Yaroch must appear before the corresponding federal court for his initial arraignment hearing and the determination of pretrial release conditions.
The case lands as U.S. authorities push harder on crypto-related crime. The FBI's Internet Crime Complaint Center reported that Americans lost a record $20.9 billion to cybercrime over the past year, and the Consumer Federation of America recently estimated $80.7 billion in crypto-related scam losses for 2025. Federal agents also arrested Zyaire Dontaevious Zamarion Wilkins, 21, of North Lauderdale, on Tuesday for allegedly joining a video game malware conspiracy that drained $220,000 from wallets.
For those tracking crypto security and law enforcement, the Yaroch case raises questions about how the FBI safeguards seized digital assets internally. Crypto market analysis continues to monitor how such incidents affect institutional confidence in digital asset custody.
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