Former FBI agent charged after alleged crypto theft, ChatGPT searches detailed in court filing

Former FBI agent charged after alleged crypto theft, ChatGPT searches detailed in court filing

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News Editor
2026-08-03 21:17:06
A former FBI supervisory special agent, Patrick Steven Yaroch, has been charged with interstate transportation of stolen goods and receipt of stolen goods after prosecutors accused him of stealing nearly $1 million in cryptocurrency tied to FBI counterintelligence investigations. Court documents say the alleged conduct took place from early 2025 through July 2026, when Yaroch was assigned to the FBI's Counterintelligence and Espionage Division and held a Top Secret security clearance. Investigators said Yaroch admitted accessing FBI systems to obtain wallet seed phrases linked to investigations involving an unnamed foreign adversary, memorizing those phrases, creating his own wallet, and moving funds into accounts he controlled about 10 times. He allegedly told investigators the holdings later grew to roughly $1 million. Searches of Yaroch's home and devices turned up a Trezor hardware wallet, handwritten seed phrases, and a Kraken account with about $188,570, including around $166,000 in U.S. dollars and nearly $18,000 in USDC. The affidavit also described ChatGPT conversations recovered from his phone, including questions about how to invest or spend $1 million for maximum return and how someone with that amount could leave the U.S. and obtain residency or citizenship in a European Union country. Prosecutors also cited evidence tied to Portugal travel plans and power-of-attorney documents in support of probable cause for his July 31 arrest.

A former FBI supervisory special agent has been charged with stealing nearly $1 million in cryptocurrency from wallets tied to FBI counterintelligence investigations, according to court documents that also describe how he later used ChatGPT to ask about investing the money and relocating abroad.

Former FBI agent charged after alleged crypto theft, ChatGPT searches detailed in court filing 2

Charges filed against former agent

Patrick Steven Yaroch was charged Friday with interstate transportation of stolen goods and receipt of stolen goods. Prosecutors said the alleged thefts took place between early 2025 and July 2026, while Yaroch was working in the FBI's Counterintelligence and Espionage Division and holding a Top Secret security clearance.

"During the afternoon of July 28, 2026, Yaroch contacted DOJ Employee 1 via Signal and requested to meet to discuss personal matters," prosecutors said in the complaint. "Upon meeting DOJ Employee 1 at FBI headquarters, Yaroch immediately started to break down as he told his story."

Investigators say seed phrases were taken from FBI systems

According to investigators, Yaroch admitted he accessed FBI systems to obtain cryptocurrency wallet seed phrases connected to investigations involving an unnamed foreign adversary. He allegedly memorized the recovery phrases, created his own cryptocurrency wallet, and transferred funds into accounts under his control about 10 times.

Investigators said Yaroch told them the holdings eventually grew to about $1 million.

Searches found a Trezor wallet and funds on Kraken

During searches of Yaroch's home and devices, investigators recovered a Trezor hardware wallet and handwritten cryptocurrency seed phrases. The affidavit said agents also found a Kraken account with a balance of about $188,570, including roughly $166,000 in U.S. dollars and nearly $18,000 in USDC, along with small amounts of Bitcoin and other cryptocurrencies.

Phone records included ChatGPT conversations

Investigators also recovered several ChatGPT conversations from Yaroch's phone. According to the affidavit, on May 28 he asked how he should invest or spend $1 million "to maximize profit and return." Less than a week later, he asked what someone with about $1 million should do to leave the U.S. and become a resident or citizen of a European Union country.

Later searches included whether Americans need a visa when connecting through Turkey and help drafting a follow-up email about a job opportunity and life in Greece.

Portugal documents and travel records cited by prosecutors

Investigators also found evidence of a planned family trip to Portugal, power-of-attorney documents related to Portugal, and what prosecutors described as previously unreported foreign travel. Prosecutors argued that evidence, together with Yaroch's admissions and the recovered cryptocurrency, established probable cause for his arrest on July 31.

"FBI WF Agents mentioned to Yaroch that they located the power of attorney forms for Portugal. Yaroch stated he was not planning to funnel money into Portugal," the complaint said. "Yaroch told FBI WF Agents that his family had a trip planned to Portugal in September 2026 to meet friends. Yaroch realized he might not be able to attend the trip but stated he hoped his wife and child would still go on the trip."

This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan.
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