A former FBI agent has pleaded guilty to stealing nearly $2.5 million in cryptocurrency from wallets linked to fraud victims and nation-state hackers under investigation, using passphrases obtained from the bureau's case management systems.
Patrick Steven Yaroch, 37, pleaded guilty on Thursday to wire fraud and money laundering charges. He worked on a national security investigative squad at the FBI Boston Division from 2017 to 2025 and as a supervisory special agent in the FBI Headquarters Counterintelligence and Espionage Division between February 2025 and July 2026.
The Justice Department said Yaroch conducted about 100 fraudulent transfers using credentials tied to 35 separate FBI investigations, illicitly gaining approximately $2,474,380.66. Between Nov. 25, 2025, and Jan. 13, 2026, he transferred about $93,082 to one of his accounts, then moved funds between accounts to cover debts including credit cards, car payments and other loans.
Yaroch admitted that he used passphrases from the FBI's case management systems and another platform used to share investigative data to transfer cryptocurrency from wallets of fraud victims or suspects under FBI investigation to his own wallets. According to court documents, after transferring the cryptocurrency, he tried to launder the funds by exchanging it for other cryptocurrencies.
Yaroch self-reported the theft to Department of Justice National Security Division and FBI Headquarters employees on July 29. The FBI placed him on administrative leave that day and fired him on July 31, 2026. He was arrested on July 31 at his residence.
Prosecutors said Yaroch's actions compromised multiple FBI investigations involving both nation-state adversaries and criminal groups, as well as FBI sources and methods used in criminal investigations and foreign intelligence collection.
Yaroch was also planning to move to Portugal in early September with his family, as shown by flight tickets to Lisbon and power-of-attorney documents to two lawyers in Portugal to obtain a tax identification number. He asked ChatGPT where to live in the European Union, writing: "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?"
Yaroch is scheduled to be sentenced on March 4, facing up to 20 years in prison for each charge.
Analysis
Why This Matters
- The case highlights insider risk within law enforcement, where an agent exploited access to sensitive investigative data for personal gain.
- The theft compromised multiple investigations involving nation-state adversaries and criminal groups, potentially damaging national security and ongoing cases.
- The incident raises questions about security controls on case management systems and cryptocurrency handling by federal agencies.
Background
Yaroch worked at the FBI for nearly a decade, serving on a national security squad in Boston before moving to FBI headquarters in Washington, D.C., where he handled counterintelligence and espionage matters. He self-reported his theft in July 2026, leading to his arrest and firing. The case combines elements of cybercrime, internal corruption and the use of AI tools in planning flight.
Key Perspectives
- Justice Department: said Yaroch conducted approximately 100 fraudulent transfers using credentials related to 35 separate FBI investigations, illicitly gaining approximately $2,474,380.66.
- Prosecutors: said Yaroch's actions compromised multiple FBI investigations involving both nation-state adversaries and criminal groups, as well as FBI sources and methods.
What to Watch
- Yaroch's sentencing on March 4, and whether the judge imposes the maximum 40 years or a lesser term.
- Whether the FBI or DOJ announce changes to case management system access controls or cryptocurrency handling procedures.
- The status of the compromised investigations and any fallout for ongoing operations.
Checked
12 claims in this story checked against 1 source: 12 supported.
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- SupportedThe former FBI agent pleaded guilty to stealing nearly $2.5 million in cryptocurrency.BleepingComputer: “A former FBI agent has pleaded guilty to stealing nearly $2.5 million from the wallets of fraud victims and nation-state hackers under investigation.”
- SupportedThe cryptocurrency was taken from wallets of fraud victims and nation-state hackers under investigation.BleepingComputer: “A former FBI agent has pleaded guilty to stealing nearly $2.5 million from the wallets of fraud victims and nation-state hackers under investigation.”
- SupportedYaroch used passphrases obtained from FBI case-management systems and another platform to transfer cryptocurrency to his own wallets.BleepingComputer: “Yaroch pleaded guilty on Thursday to wire fraud and money laundering charges, admitting that he used passphrases (obtained from the FBI's case management systems and another platform used to share investigative data) to transfer funds from the cryptocurrency wallets of fraud victims or suspects under FBI investigation to his own wallets.”
- SupportedYaroch pleaded guilty on Thursday to wire fraud and money laundering charges.BleepingComputer: “Yaroch pleaded guilty on Thursday to wire fraud and money laundering charges”
- SupportedYaroch worked on an FBI Boston national security investigative squad from 2017 to 2025, then as a supervisory special agent in the FBI Headquarters Counterintelligence and Espionage Division from February 2025 to July 2026.BleepingComputer: “37-year-old Patrick Steven Yaroch worked on a national security investigative squad at the FBI Boston Division (FBI BS) from 2017 to 2025, and as a supervisory special agent in the FBI Headquarters (FBIHQ) Counterintelligence and Espionage Division (CED) between February 2025 and July 2026.”
- SupportedHe conducted about 100 fraudulent transfers using credentials related to 35 separate FBI investigations.BleepingComputer: “Throughout his wire fraud scheme, Yaroch conducted approximately 100 fraudulent transfers using credentials related to 35 separate FBI investigations.”
- SupportedThe Justice Department said he illicitly gained approximately $2,474,380.66.BleepingComputer: “He illicitly gained approximately $2,474,380.66 in fraudulent proceeds," the Justice Department said.”
- SupportedBetween Nov. 25, 2025, and Jan. 13, 2026, Yaroch transferred about $93,082 to one account and moved funds between accounts to pay debts including credit cards, car payments and other loans.BleepingComputer: “Between Nov. 25, 2025, and Jan. 13, 2026, Yaroch transferred approximately $93,082 to one of his accounts, then transferred the funds between his other accounts from which he sent various payments to cover his debts, including credit cards, car payments, and other loans.”
- SupportedAfter transferring the cryptocurrency, Yaroch tried to launder the funds by exchanging them for other cryptocurrencies.BleepingComputer: “According to court documents , after transferring the cryptocurrency, he tried to launder the funds by exchanging it for other cryptocurrencies.”
- SupportedYaroch self-reported the theft on July 29, was placed on administrative leave that day, and was fired and arrested on July 31, 2026.BleepingComputer: “He was arrested on July 31 at his residence after self-reporting the crypto theft to Department of Justice (DOJ) National Security Division (NSD) and FBIHQ employees on July 29. The FBI fired Yaroch on July 31, 2026, after first placing him on administrative leave on July 29.”
- SupportedProsecutors said Yaroch's actions compromised multiple FBI investigations, as well as FBI sources and methods used in criminal investigations and foreign intelligence collection.BleepingComputer: “The prosecutors added that Yaroch's actions have compromised multiple FBI investigations involving both nation-state adversaries and criminal groups, as well as FBI sources and methods used in criminal investigations and foreign intelligence collection.”
- SupportedYaroch asked ChatGPT what it would do with around $1 million to leave the US and become a resident or citizen of an EU country.BleepingComputer: “"If you had a bucket ofmoney (around $1 million) and you wanted to leave the USA and become a resident or citizen ofan EU country, what would you do?," he asked.”