FBI Agent Allegedly Steals Nearly USD 1 Million in Cryptocurrency From Suspect’s Accounts

A former FBI agent has been charged with allegedly stealing more than USD 900,000 in cryptocurrency from digital wallets the bureau was monitoring as part of a national security investigation, according to court records made public on Monday, August 3. The agent, Patrick Steven Yaroch, was arrested last week after investigators alleged he used his official access to transfer the cryptocurrency into a personal account.

According to the WSJ report, the federal prosecutors say Yaroch discovered the cryptocurrency while serving on the FBI's national security investigative squad focused on an "adversarial nation." According to a criminal affidavit, he became frustrated with what he believed was the government's limited response to the misuse of the crypto accounts and later accessed them without authorisation. Who Is Khalid Satary? FBI Most Wanted Fraudster Arrested in USD 547 Million Medicare Fraud Case.

FBI Agent Arrested Over Alleged USD 900,000 Cryptocurrency Theft

Court documents state that Yaroch encountered the cryptocurrency holdings while working on an FBI investigation involving an unnamed individual linked to an adversarial foreign nation.

Investigators allege that he became "frustrated when he could not do more to disrupt" the individual's use of the cryptocurrency accounts. Prosecutors say Yaroch later used internal FBI access to transfer the digital assets, valued at more than USD 900,000, into his own cryptocurrency wallet. Who Is Harmanveer Singh? FBI Wants Indian National in Multi-Nation Drug Trafficking Ring.

Following the discovery of the alleged theft, the FBI terminated Yaroch's employment. He now faces federal charges related to the interstate transport of stolen goods and the receipt of stolen goods. An attorney for Yaroch was not listed in court records, and he has not publicly responded to the allegations.

ChatGPT Search Cited in Affidavit

The affidavit also highlights investigators' review of Yaroch's online activity before his arrest. According to court records, the month before his arrest Yaroch allegedly 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?"

The affidavit states ChatGPT replied: "At 37, with a young family, a goal of potentially retiring around 40, and a clear interest in eventually building a slower-living vineyard/agricultural lifestyle in places like Cilento or Portugal's Dão region…" The affidavit includes the exchange as part of investigators' evidence regarding Yaroch's activities before his arrest.

FBI Responds

The FBI said it acted immediately after learning of the allegations. "As soon as the FBI became aware of these allegations, we immediately took action, began an investigation, and ultimately executed an arrest warrant for this individual last week," an FBI spokesperson told CNN. "We hold our employees to the highest ethical standards, and this conduct is not tolerated at the FBI. We are conducting a thorough investigation in the aftermath, and as this is an ongoing matter, we will have no further comment."

According to investigators, Yaroch also made an admission during an interview at his home. "I f—d up," Yaroch told FBI agents when they interviewed him last month, according to the affidavit.

The FBI routinely monitors cryptocurrency wallets believed to be connected to cybercrime, sanctions evasion and foreign state actors, including investigations involving Russia, China and other countries. Decisions on whether to seize cryptocurrency or continue monitoring accounts for intelligence purposes are typically made on a case-by-case basis.

The case also illustrates the growing role of cryptocurrency and artificial intelligence in federal criminal investigations, with digital evidence, blockchain transactions and AI chatbot interactions increasingly appearing in court filings. Federal prosecutors have not disclosed the identity of the individual whose cryptocurrency accounts were allegedly accessed, and the criminal case against Yaroch remains ongoing.

(The above story first appeared on LatestLY on Aug 04, 2026 08:02 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).