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An FBI counterintelligence agent allegedly used information from government systems to transfer around $1 million in cryptocurrency from accounts linked to a foreign target. Patrick Steven Yaroch later reported his conduct and was arrested on July 31.
Good To Know
Yaroch worked on national security investigations in the FBI Boston Division before joining the Counterintelligence and Espionage Division in Washington DC in February 2025.
According to an FBI affidavit filed in the Eastern District of Virginia, Yaroch became frustrated that authorities had not disrupted cryptocurrency activity tied to an unnamed adversarial nation. He allegedly searched FBI systems for wallet passphrases and completed between 10 and 12 transfers into a personal Kraken account.
Investigators said the transfers began in late 2024 or early 2025. Yaroch estimated that he took less than $1 million but said the assets became mixed with his own funds, making the exact amount unclear.
Yaroch contacted a Justice Department employee on July 28 and said his conduct was “eating him up inside.” He later told investigators that he had “f***ed up.”
The affidavit says Yaroch transferred about $1.02 million from Kraken to Slush, a Sui wallet, before placing assets on the Suilend decentralized finance platform.
He allegedly told investigators that he selected Suilend because “he liked that the logo was a water droplet.”
Agents moved cryptocurrency worth $925,426.07 into government-controlled wallets. Another $165,582.49 remained in the Kraken account in US dollars and could not be sent to a crypto wallet, according to the filing.
A phone seized from the Yaroch home also contained ChatGPT conversations about investing $1 million, relocating to Europe and building a vineyard lifestyle. Investigators also found September flights to Portugal and documents authorizing Portuguese lawyers to obtain a tax identification number.
The FBI said it acted as soon as officials learned about the allegations. Yaroch now faces charges of interstate transportation of stolen goods, securities and money, along with receipt of stolen goods, securities and money. No conviction has been entered, and the allegations remain unproven in court.