A former FBI agent has pleaded guilty to taking nearly $2.5 million from the cryptocurrency wallets of fraud victims and nation-state hackers under investigation. Patrick Steven Yaroch, 37, worked on an FBI Boston Division national security investigative squad from 2017 to 2025 and later served as a supervisory special agent in the FBI Headquarters Counterintelligence and Espionage Division from February 2025 to July 2026.
His arrest came on July 31 at his residence, two days after he reported the crypto theft to Department of Justice National Security Division and FBI Headquarters employees on July 29. The FBI first put him on administrative leave on July 29 and then fired him on July 31, 2026.
What Yaroch admitted
Yaroch pleaded guilty on Thursday to wire fraud and money laundering. He admitted using passphrases taken from the FBI’s case management systems and another platform for sharing investigative data to move funds from cryptocurrency wallets tied to fraud victims or suspects under FBI investigation into wallets he controlled. Court documents say he then tried to launder the cryptocurrency by exchanging it for other cryptocurrencies.
The Justice Department said he carried out about 100 fraudulent transfers through credentials linked to 35 separate FBI investigations. It also said he gained about $2,474,380.66 in fraudulent proceeds. Between Nov. 25, 2025, and Jan. 13, 2026, he transferred about $93,082 to one of his accounts, moved the money among his other accounts, and used it for debts that included credit cards, car payments, and other loans.
Planned move to Portugal
Prosecutors said Yaroch was also preparing to move to Portugal in early September with his family. They pointed to flight tickets to Lisbon and power-of-attorney documents for two lawyers in Portugal who were to help him obtain a tax identification number. The move planning came after he asked ChatGPT where to live in the European Union.
In one message, he asked, “If you had a bucket ofmoney (around $1 million) and you wanted to leave the USA and become a resident or citizen ofan EU country, what would you do?” ChatGPT replied with a reference to his age, family, retirement goal around 40, and interest in a slower-living vineyard and agricultural lifestyle in places such as Cilento or Portugal’s Dão region.
Impact on investigations
Prosecutors said Yaroch’s actions compromised multiple FBI investigations involving both nation-state adversaries and criminal groups. They also said the conduct affected FBI sources and methods used in criminal investigations and foreign intelligence collection.
Yaroch is scheduled to be sentenced on March 4. He faces up to 20 years in prison for wire fraud and another maximum of 20 years for money laundering.
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