A former FBI agent decided the best use of his top-secret clearance and counterintelligence access was stealing nearly a million dollars in cryptocurrency. Patrick Steven Yaroch, a supervisory special agent who worked in the FBI’s Counterintelligence and Espionage Division, now faces federal charges for allegedly swiping roughly $925,426.07 from cryptocurrency wallets tied to active FBI investigations. Wallets connected to a foreign adversary, no less.
The alleged method was almost embarrassingly simple. Yaroch reportedly used FBI systems to look up wallet seed phrases and passphrases linked to investigative accounts. Then he memorized them. Set up a personal crypto wallet. And started moving money. Sources say he made somewhere between 10 and 12 transfers total. Over a scheme that reportedly began in late 2024 and stretched into mid-2026.
He memorized the seed phrases. Set up a personal wallet. And just started moving the money.
Here’s where it gets especially strange. Yaroch apparently told a Justice Department employee that the FBI “could not or would not act” against the foreign adversary’s cryptocurrency accounts. So he took matters into his own hands. That’s his reasoning. A federal law enforcement officer with a top-secret clearance decided the right move was to steal government-seized crypto because he was frustrated with bureaucratic inaction. Bold strategy.
He reportedly admitted to investigators that he accessed FBI systems and found the keys needed to transfer the funds to himself. His own words? He made “very poor decisions.” He also reportedly claimed he never used the money. Whether that holds up legally remains to be seen, but it’s a notable detail.
The scheme unraveled fast once it did. On July 28, Yaroch reportedly confessed to a colleague. Three days later, he was fired. The FBI confirmed his termination and said a thorough investigation was underway, adding no further comment since the matter is ongoing. Notably, Yaroch voluntarily surrendered his credentials and cryptocurrency wallet details to investigators during the search.
Yaroch had been with the bureau since 2017. He worked national security and counterintelligence cases. He held a top-secret clearance. And according to court documents and an FBI affidavit, he used all of that access to allegedly steal from the very investigations he was supposed to protect. Security experts widely recommend using cold storage wallets to prevent unauthorized access, a safeguard notably absent in the government accounts Yaroch allegedly exploited.
Federal charges include interstate transportation of stolen goods and receipt of stolen goods. Investigators also recovered ChatGPT conversations from Yaroch’s phone showing he had sought advice on investment strategies for his approximately $1 million in holdings and on relocating to a European Union country. The case is drawing serious attention because it sits at a uniquely uncomfortable intersection. Insider access. Digital asset theft. National security implications. It’s not a story about some outside hacker finding a vulnerability. It’s about someone already inside the building. Already trusted. Already cleared. That’s the part that stings.
