Ex-FBI agent charged with stealing $925K in crypto from probe wallets

According to the affidavit, Yaroch later told investigators the assets originated from accounts linked to an unnamed foreign adversary. The complaint does not state the cryptocurrency belonged to the FBI. It describes wallets identified during federal investigations.

Prosecutors said Yaroch met with Justice Department personnel on July 28, during which he allegedly admitted to making “very poor decisions.” The affidavit states he said frustration over the FBI’s inability to act against the wallets led him to “take matters into [his] own hands.”

The FBI placed Yaroch on administrative leave on July 29 before terminating his employment two days later.

During a search of his Virginia residence, investigators said they recovered electronic devices, a Trezor hardware wallet, and a handwritten seed phrase. The affidavit also identified cryptocurrency linked to accounts on Kraken and the Suilend protocol.

According to court filings, Yaroch consented to transferring approximately $925,426 in cryptocurrency to government-controlled wallets. Investigators also identified about $165,582 in US dollars held in his Kraken account.

Prosecutors said the recovered cryptocurrency had been commingled with Yaroch’s personal assets. The recovered balances do not establish the precise value of the funds he allegedly transferred.

The allegations have been presented in a criminal complaint, and the case has not yet been tested in court. Yaroch is presumed innocent unless and until proven guilty.