FBI Agent Arrested For Stealing $1M in Crypto From Wallets

An FBI counterintelligence agent found himself behind bars on Friday after allegedly looting target cryptocurrency accounts and accumulating around one million dollars in digital assets. Court documents show that Patrick Yaroch, a supervisory special agent based in Washington, walked in and self reported his actions last week. He told investigators that the guilt was eating him up inside and he needed to clear his conscience.

Between 2017 and 2025, Yaroch worked in the Boston division on a national security squad focused on foreign nation states. The affidavit states that he grew frustrated when he could not disrupt a target individual's crypto usage. He allegedly used internal FBI systems to find passkeys, transferring funds from adversarial wallets to his personal account on Kraken before moving the money through a cross platform wallet app.

Investigators recovered most of the funds into government wallets, though some cash remained in a Kraken account. Searches of his home and phone also revealed chat history asking artificial intelligence tools how to move one million dollars to Europe and buy a vineyard. Traders should keep an eye on how law enforcement handles digital asset security following this unusual internal breach.