Former FBI counterintelligence agent Patrick Steven Yaroch has been arrested for allegedly stealing cryptocurrency worth nearly $1 million from digital wallets monitored by the bureau during an investigation. Yaroch, who worked in the FBI’s Counterintelligence and Espionage Division, is accused of using his access to sensitive government systems to obtain information needed to transfer funds from accounts reportedly linked to a foreign adversary. Sources cited by CNN said the accounts were connected to Russia.

According to court documents, Yaroch allegedly became dissatisfied with how the FBI was handling the cryptocurrency accounts and created a personal digital wallet in late 2024. Prosecutors claim he then accessed bureau databases to obtain passphrases associated with the monitored wallets. The funds were allegedly moved into his control through approximately 10 to 12 transactions. Authorities estimated the stolen cryptocurrency’s value at about $1 million, although the allegations have yet to be proven in court.

Federal agents searched Yaroch’s home in Ashburn and recovered cryptocurrency valued at $925,426, investigators said. The search also allegedly uncovered a hardware wallet, handwritten seed phrases and documents indicating that he may have been considering relocating abroad. Some of the paperwork was reportedly connected to Portugal. Bloomberg News reported that Yaroch was dismissed from the FBI and arrested on the same day authorities executed the search warrant at his residence.

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Investigators also recovered ChatGPT conversations from Yaroch’s mobile phone, according to court records. In those exchanges, he allegedly sought information about investing or spending $1 million and asked questions concerning a possible move overseas. Authorities further claimed that Yaroch eventually admitted his actions to a colleague before contacting the US Department of Justice and acknowledging that he had made poor decisions. The reported confession and recovered digital evidence are expected to form part of the prosecution’s case.

The FBI said it took immediate action after becoming aware of the allegations, opened an investigation and later executed an arrest warrant. The bureau stated that employees are held to high ethical standards and that such conduct would not be tolerated. Yaroch has been charged with interstate transportation of stolen goods and receipt of stolen goods, and a federal magistrate judge ordered his temporary detention while proceedings continue. His lawyer had not publicly responded to the accusations, and Yaroch is presumed innocent unless proven guilty.

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