Patrick Steven Yaroch, a former FBI agent, has pleaded guilty to stealing approximately $2.47 million in cryptocurrency that had been confiscated during FBI investigations. Yaroch, 37, from Ashburn, Virginia, admitted to charges of wire fraud and money laundering. This total is more than twice the $1 million he initially reported when he confessed to a Justice Department colleague in July.
Extent of theft and internal access
Yaroch’s guilty plea revealed that the theft involved nearly 100 individual transfers, using wallet credentials obtained from 35 FBI cases. According to the Department of Justice, he systematically accessed internal FBI systems to collect the keys to cryptocurrency wallets that were being held as case evidence.
Officials indicated that Yaroch used his position in the FBI’s Boston office between 2017 and early 2025, and later in the Counterintelligence and Espionage Division, to access sensitive information without the need for hacking. He had direct access to internal records and reportedly memorized and recorded secret recovery phrases that allowed him to make the illicit transfers.
To conceal the source of funds, Yaroch moved the stolen cryptocurrency through multiple swapping and combining transactions. He ultimately used some of the assets to pay down credit card debt, car loans, and other personal liabilities.
Confession and investigation details
Yaroch first admitted to the theft in late July, telling a Justice Department colleague about the scheme and noting that the “shame was eating him up inside.” He initially indicated he had taken around $1 million, but later records revealed a much higher amount once investigators reviewed transaction histories.
Chat messages discovered during the investigation showed Yaroch sought advice from ChatGPT about managing approximately $1 million and relocating to Europe. He specifically explored options such as purchasing a vineyard in Portugal, and proceeded to hire lawyers to assist with obtaining a Portuguese tax identification number.
Yaroch’s confession highlighted how he researched cryptocurrency wallets, created his own, and found the necessary account information stored openly in FBI databases, making the unauthorized transfers without technical intrusion.
A search of Yaroch’s home turned up a Trezor hardware wallet, handwritten wallet recovery phrases, Portuguese legal paperwork authorizing another person to act on his behalf, and three passports. Yaroch is scheduled for sentencing on March 4, 2027, and could face up to 20 years in prison.
Wider pattern of insider crypto theft
This is not the first instance of a government insider accused of stealing cryptocurrencies held by US authorities. In March, the FBI arrested John “Lick” Daghita in Saint Martin over allegations he took more than $46 million in digital assets from the US Marshals Service. Daghita is the son of the CEO of Command Services & Support, a company with a Marshals contract for the management and sale of seized digital assets. Blockchain investigator ZachXBT identified his activity after Daghita displayed $23 million during a Telegram conversation.
There have also been earlier cases involving federal agents. In a notable incident, Shaun Bridges, formerly with the Secret Service, and Carl Force, a former Drug Enforcement Administration agent, participated in the Silk Road investigation. Bridges pleaded guilty to taking more than $800,000 in Bitcoin and later faced additional accusations of transferring another $700,000 from a government-controlled account after being charged.
The Justice Department indicated that cases such as Yaroch’s expose ongoing vulnerabilities related to the management of seized digital assets by US federal agencies.
Given the significant sums involved and the internal nature of these thefts, law enforcement and regulatory agencies may consider implementing stronger controls and enhanced monitoring of digital asset storage.
With high-profile crypto thefts involving government insiders now making headlines, tracking movements across seized wallet addresses has become crucial for stakeholders and agencies. CryptoAppsy can help users monitor crypto wallets in real time, offering instant alerts whenever suspicious transactions occur. Its focused tracking features provide investigators, compliance teams, and individuals with an extra layer of visibility as fresh cases of asset theft come to light.
