FBI Agent Arrested for Stealing $1M in Crypto Assets

A former FBI supervisory special agent, Patrick Steven Yaroch, was arrested and fired in July following allegations that he stole roughly $1 million in cryptocurrency. The funds were tied to a foreign government investigation that Yaroch was assigned to lead. Court documents state that he memorized seed phrases from accounts he was tracking and moved the assets into his own personal wallets.

Investigators discovered the stolen funds across a Kraken account and the Sui lending protocol known as Suilend. While searching his home, authorities found various items including a Trezor hardware wallet, multiple passports, and documents suggesting he was planning a move to Portugal. The affidavit notes that Yaroch never spent the stolen money and did not have contact with the individuals who originally owned the accounts.

This incident marks the second time this year that an insider has been accused of stealing digital assets from government controlled wallets. The case highlights ongoing security challenges regarding the handling of seized crypto by law enforcement agencies. Yaroch remains in detention while the case proceeds to future hearings.