FBI Agent Charged in $1 Million Crypto Embezzlement Scheme
A former FBI supervisory special agent has been charged with embezzling over $1 million in cryptocurrency from investigative wallets tied to a foreign adversary. According to a criminal complaint, Patrick Steven Yaroch allegedly abused his access to internal FBI systems to obtain wallet recovery credentials and transfer the funds into personal control.
Prosecutors say Yaroch made around ten unauthorized transactions between late 2024 and early 2026, with some of the assets deposited into Suilend, a decentralized lending platform on the Sui blockchain. The case came to light when Yaroch voluntarily approached FBI personnel and admitted to taking the cryptocurrency due to frustration with the bureau's inability to disrupt suspected foreign actors using digital assets.
Agents later searched Yaroch's residence and recovered cryptocurrency hardware, handwritten wallet recovery phrases, and multiple digital devices. Investigators also gained access to accounts allegedly controlled by Yaroch and transferred approximately $925,000 in crypto into government-controlled wallets after he signed a consent form authorizing the seizure.