On Tuesday, August 4, 2026, CNN reported that an FBI agent, Patrick Steven Yaroch, has been accused of stealing nearly $1 million in cryptocurrency.
The agent allegedly misappropriated funds from accounts that the FBI was monitoring. According to court records made public on Monday, Yaroch reportedly grew frustrated with what he perceived as government inaction regarding the misuse of crypto accounts.
Yaroch, who was part of the FBI’s national security investigative squad, allegedly discovered the cryptocurrency holdings while working on a case involving an “adversarial nation.” The affidavit in his case indicates that he became “frustrated when he could not do more to disrupt” the use of these accounts by an unnamed individual. It is alleged that Yaroch then used his internal agency access to transfer the cryptocurrency to his personal account.
Following these allegations, Yaroch was fired by the FBI and arrested last week. A criminal complaint has been filed against him, with charges including the interstate transport and receipt of stolen goods. As of the report, an attorney for Yaroch was not listed in court records, and CNN’s attempts to reach an email associated with Yaroch for comment were ongoing.
The FBI actively monitors cryptocurrency accounts suspected of being used by criminal and state actors, particularly from countries like Russia and China. Decisions on how to proceed with these accounts, whether to seize them or use them for intelligence gathering, are typically made on a case-by-case basis. The affidavit also highlights the evolving landscape of criminal investigations due to advancements in artificial intelligence and the increasing prevalence of cryptocurrencies.
In a notable detail from the affidavit, it is reported that Yaroch allegedly used ChatGPT the month before his arrest. He reportedly posed a hypothetical question to the AI: “If you had a bucket of money (around $1 million) and you wanted to leave the USA and become a resident or citizen of an EU country, what would you do?” ChatGPT’s response, according to the affidavit, was tailored to Yaroch’s age and lifestyle, suggesting a move to regions like Cilento or Portugal’s Dão region for a vineyard or agricultural lifestyle.
An FBI spokesperson confirmed the agency’s immediate action upon becoming aware of the allegations, stating, “We hold our employees to the highest ethical standards, and this conduct is not tolerated at the FBI. We are conducting a thorough investigation in the aftermath, and as this is an ongoing matter, we will have no further comment.”
The affidavit also includes details from interviews, where Yaroch reportedly confessed to FBI agents during an interview at his home last month, stating, “I f-d up.”
Source: CNN
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