FBI Agent Accused of Stealing $1M in Cryptocurrency from Foreign Intelligence Target

A former FBI supervisory special agent has been accused of stealing over $1 million in cryptocurrency from an adversarial foreign intelligence target. Patrick Yaroch, 41, was arrested on July 31 at his Ashburn, Virginia, home and charged with interstate transportation of stolen property and receipt of stolen property.

The alleged theft did not rely on advanced blockchain tricks or hidden exploits. Prosecutors say Yaroch discovered seed phrases, the recovery words that provide complete control over a cryptocurrency wallet, while working on an investigation involving the foreign target in late 2024 or early 2025. He allegedly imported those recovery phrases into wallets under his own control and transferred funds from the target's accounts roughly 10 to 12 separate times.

The FBI has recovered approximately $925,426 of the stolen cryptocurrency, which was found in a Kraken account connected to a TD Bank account that Yaroch accessed using facial recognition on his phone. Another $165,582 remained inside the Kraken account because the balance had already been converted into U.S. dollars and could not be recovered through the same cryptocurrency transfer process.