FBI Employee Confessed to Stealing Nearly US$1 Million in Crypto Before Investigators Found His ChatGPT Escape Plan

FBI Employee Accused of Secretly Moving Nearly US$1 Million in Crypto

An FBI employee assigned to national security investigations is facing federal criminal charges after allegedly transferring nearly US$1 million worth of cryptocurrency from wallets linked to a foreign adversary into his own personal accounts.

Patrick Steven Yaroch, who worked on investigations involving an adversarial nation identified by sources as Russia, is accused of using his authorised access to FBI systems to obtain the private keys needed to move digital assets.

Court documents say he carried out about 10 to 12 cryptocurrency transfers between late 2024 and early 2025, with the total amount reaching approximately US$925,426.07.

He has been charged with interstate transportation of stolen goods and receipt of stolen goods.

The FBI has since dismissed him from the agency.

Why Did He Take the Cryptocurrency

According to an FBI affidavit, Yaroch admitted he became frustrated because he believed the bureau "could not or would not act against adversarial cryptocurrency accounts" during an ongoing investigation.

He allegedly told a Department of Justice employee that he wanted to do more to disrupt the use of cryptocurrency by an adversarial nation but felt unable to do so through official channels.

Investigators said Yaroch later admitted,

"Yaroch said that he went into FBI systems and found keys needed to transfer money from wallets to himself."

The affidavit also states that he never communicated with anyone connected to the cryptocurrency accounts, including any foreign entities.

Confession Led to Criminal Investigation

Rather than being caught through an external tip, the case began after Yaroch voluntarily confessed.

Court records state he contacted a Department of Justice employee on 29 July 2026 and immediately became emotional while explaining what had happened.

He reportedly said he had made "very poor decisions related to cryptocurrency wallets."

According to the affidavit, he admitted the guilt had become overwhelming because he was ashamed and it was "eating him up inside."

He also submitted an FBI self-report form before voluntarily meeting officials at FBI headquarters, where he reportedly told them he wanted to disclose something because he had "screwed up."

When FBI agents later searched his home, Yaroch handed over his FBI credentials, provided access to his mobile phone and identified the cryptocurrency wallets and platforms he had used, including Kraken, Slush and Suilend.

During an interview at his home, investigators said Yaroch simply told them,

"I f—d up."

ChatGPT Searches Became Part of the Evidence

Investigators also recovered ChatGPT conversations from Yaroch's phone that were included in the affidavit.

In May 2026, he reportedly 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?"

According to the filing, ChatGPT responded with advice tailored to information Yaroch had previously shared, including his age, family situation and plans to retire early in countries such as Portugal.

Another search allegedly asked:

"If I had a million dollars, how would you suggest investing/spending it to maximize profit and return."

The conversations have been included as part of the evidence presented by investigators.

FBI Fires Employee as Court Case Begins

Yaroch was arrested and fired by the FBI on 31 July 2026.

A US magistrate judge ordered him to remain temporarily detained, with a further court hearing scheduled shortly afterwards.

Responding to the case, an FBI spokesperson said the agency acted as soon as it became aware of the allegations.

The spokesperson said,

"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."

"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."