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Former FBI Agent Charged With Stealing Nearly $1 Million in Crypto and Using ChatGPT for Investment Advice
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A former FBI supervisory special agent has been charged with stealing nearly $1 million in cryptocurrency from wallets linked to FBI counterintelligence investigations. Patrick Steven Yaroch was charged on Friday with interstate transportation of stolen goods and receipt of stolen goods. Prosecutors allege the thefts occurred between early 2025 and July 2026 while Yaroch worked in the FBI's Counterintelligence and Espionage Division.
According to the criminal complaint, Yaroch accessed FBI systems to obtain cryptocurrency wallet seed phrases connected to investigations involving a foreign adversary. He allegedly memorized the recovery phrases, created his own wallet, and transferred funds about 10 times. The holdings eventually grew to about $1 million, investigators said. Yaroch admitted to the scheme during a meeting with a Department of Justice employee on July 28, 2026.
Court filings reveal that Yaroch sought advice from ChatGPT on how to invest the stolen funds and flee the country. In May 2026, he asked the AI chatbot how to invest or spend $1 million to maximize profit. Days later, he inquired about leaving the U.S. and becoming a resident of an EU country. Investigators also recovered searches about travel visas and job opportunities in Greece, along with evidence of a planned family trip to Portugal.
A search of Yaroch's home and devices turned up a Trezor hardware wallet, handwritten seed phrases, and a Kraken account with a balance of about $188,570. The account included roughly $166,000 in U.S. dollars and nearly $18,000 in USDC. Prosecutors also found power-of-attorney documents related to Portugal and evidence of previously unreported foreign travel. These items helped establish probable cause for his arrest on July 31.
The case raises concerns about insider threats within federal law enforcement agencies, particularly those with access to sensitive investigative materials. Yaroch held a Top Secret security clearance, making his alleged betrayal of trust especially significant. The use of an AI chatbot for planning criminal activities adds a novel dimension to the case. Legal experts note that digital evidence from such platforms is increasingly common in financial crimes.
Yaroch reportedly told agents his family had a trip planned to Portugal in September 2026, but he realized he might not attend. He stated he hoped his wife and child would still go. The complaint describes Yaroch breaking down during his confession at FBI headquarters. His current legal representation and next court appearance have not been publicly detailed.
The FBI has not commented on how the stolen funds will be returned to their rightful owners. The case will proceed through federal court, where Yaroch faces potential significant prison time if convicted. This incident may prompt a review of how the FBI protects cryptocurrency evidence and monitors employee conduct. For now, the former agent remains in custody awaiting further proceedings.
