A former FBI supervisory special agent has pleaded guilty after admitting he stole nearly $1 million in cryptocurrency from wallets linked to Russia because he believed the bureau was not doing enough to disrupt the country's digital asset operations.

Patrick Steven Yaroch, who supervised investigations involving cryptocurrency, confessed to using FBI systems to access private wallet credentials before transferring the funds into cryptocurrency wallets under his control. He later surrendered most of the stolen assets after voluntarily reporting himself to the agency.

FBI supervisor allegedly took matters into his own hands

According to prosecutors, Yaroch became increasingly frustrated that the FBI "could not or would not act against adversarial cryptocurrency accounts", which was later exposed to be Russia. Court documents say he believed the bureau was failing to sufficiently disrupt Russia's use of cryptocurrency during an ongoing investigation.

Instead of pursuing official channels, Yaroch admitted to accessing internal FBI systems to obtain the private keys needed to move funds from the wallets. Between late 2024 and early 2025, he allegedly carried out around 10 unauthorized transfers totaling nearly $1 million in digital assets into wallets he personally controlled.

Prosecutors said Yaroch never communicated with any individuals associated with the Russian-linked wallets and acted independently.

The scheme unraveled after Yaroch voluntarily confessed to FBI officials, reportedly telling investigators he had "screwed up" and that his crimes had been "eating him up inside." According to an FBI affidavit, he admitted he had gone into FBI systems, obtained the necessary wallet credentials and transferred the cryptocurrency to himself.

After placing himself on administrative leave, Yaroch was dismissed from the FBI before being arrested. During a search of his Virginia residence, investigators recovered electronic devices, seed phrases and a Trezor hardware wallet, allowing authorities to access accounts held on Suilend and the Kraken cryptocurrency exchange.

Authorities ultimately recovered about $925,000 in cryptocurrency, which was transferred into government-controlled wallets with Yaroch's cooperation. Court filings also revealed that months before confessing, Yaroch had asked ChatGPT how he should invest or spend $1 million to maximize returns. The chatbot suggested purchasing agricultural property or a vineyard in southern Europe.

Another crypto theft involving a federal agent

The FBI described the alleged conduct as unacceptable, saying the bureau "immediately took action" once it became aware of the incident and emphasizing that Yaroch had since been fired. The case marks one of the most significant cryptocurrency thefts involving a federal law enforcement officer in recent years.

It also joins a short list of high-profile cases involving U.S. agents abusing their access to digital assets. During the Silk Road investigation, former DEA agent Carl Force admitted to stealing roughly $700,000 worth of Bitcoin before receiving a six-and-a-half-year prison sentence, while former U.S. Secret Service agent Shaun Bridges pleaded guilty after stealing approximately $350,000 in Bitcoin and was sentenced to six years in prison.

This latest case underscores how insider access to digital asset investigations can itself become a security risk, even within agencies tasked with policing cryptocurrency-related crime.