An FBI agent has allegedly surrendered after taking around $1 million in cryptocurrency from foreign individuals under investigation by the agency.
Patrick Steven Yaroch contacted the Department of Justice last week to confess to making “extremely poor decisions regarding cryptocurrency wallets,” as outlined in a Federal Bureau of Investigation affidavit submitted to a district court in Virginia.
The document released on Monday indicates that Yaroch utilized FBI systems to obtain the keys required to transfer funds from cryptocurrency accounts connected to an “adversarial nation” to himself. He completed approximately 10 transfers amounting to nearly $1 million, beginning in late 2024 or early 2025, according to the affidavit.
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The affidavit details that Yaroch met with a DOJ employee he knew on July 29 and “immediately began to break down as he recounted his story.” He opted to be honest “due to the shame” that was “overwhelming him,” it states.
Yaroch learned about the accounts while performing his investigative duties in November 2024. Disheartened by the realization that the FBI “could not or would not take action” against such accounts, he accessed FBI systems to locate the keys necessary to transfer the funds to himself.
The filing claims that Yaroch never interacted with anyone connected to the accounts, including foreign entities.
Last week, the FBI conducted a search of Yaroch’s home and vehicle. During the search, he provided his iPhone Face ID and pin to the agents, who accessed his Kraken account, a cryptocurrency platform. He also revealed other applications used for the transfers, including an app called Slush, linked to a project named Suilend.
Investigations of Yaroch’s phone showed that in May this year he asked ChatGPT: “If I had a million dollars, how would you suggest investing/spending it to maximize profit and return.” He also told the AI he was 37, had a young family, and planned to retire around the age of 40 in a foreign country like Portugal.
Yaroch was fired by the FBI on July 31, the same day he was arrested. He faces charges of interstate transportation and receipt of stolen goods, securities, and funds.
The court document does not mention any attorneys representing him.
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