FBI Agent Arrested for Looting $1M in Crypto from Adversarial Wallets

He created a personal crypto wallet on Kraken and conducted 10 to 12 transfers, accumulating about $1 million in value, according to the affidavit. Yaroch said the stolen assets got mixed with his personal funds, so the filing does not specify how much came from the adversarial wallets. He then sent approximately $1.02 million from Kraken to Slush, a cross-platform wallet app for the Sui blockchain. From Slush, he placed the crypto on a decentralized finance platform called Suilend. Yaroch told investigators he chose Suilend simply because he liked that its logo was a water droplet.

FBI agents then transferred funds from the Kraken and Slush accounts – now worth a total of $925,426.07 – to US government-controlled wallets. Another $165,582.49 remained in Yaroch's Kraken account in US dollars and could not be moved to a government wallet.

Agents also seized property from Yaroch's home, including his phone. The device allegedly showed multiple ChatGPT searches about moving to Europe and operating a vineyard. At 8:35 a.m. on June 4, 2026, Yaroch asked ChatGPT, "If you had a bucket of money (around $1 million) and you wanted to leave the USA and become a resident or citizen of an EU country, what would you do?" ChatGPT responded with a detailed recommendation for Portugal, citing Yaroch's stated interest in a 2-5 hectare estate and age-worthy red wine.

The affidavit does not suggest broader systems were compromised at the FBI. The case illustrates the access Yaroch had to crypto passkeys meant for investigative use. Yaroch faces charges of theft of government property and conversion of government property. He was taken into custody Friday.