- A federal prosecutor indicted an FBI agent for the alleged theft of almost $1 million worth of cryptocurrency.
- The money reportedly originated from government-controlled crypto wallets.
- Investigators reported that he used ChatGPT to plan investments and relocate to Europe.
The Department of Justice has indicted a supervisory special agent of the FBI for theft of nearly $1 million in cryptocurrency during the investigation of a crime. According to court filings, Patrick Steven Yaroch, a counterintelligence agent with a Top Secret clearance, allegedly abused his official position to move cryptocurrencies stored in the wallets being investigated by the government. In addition, it is alleged that he later used the assistance of ChatGPT to investigate investment opportunities, residency possibilities in Europe, and financial planning after having moved the money. As pointed out by the authorities, the charges against Mr. Yaroch are still pending; however, he enjoys the benefit of innocence at this point.
Alleged Thief Gained Access Internally
According to the federal affidavit presented in the Eastern District of Virginia, Patrick Steven Yaroch worked in the FBI’s Counterintelligence and Espionage Division after joining the bureau in 2017. The prosecutors believe that he had access to cryptocurrency wallets associated with the adversarial nation. He learned recovery seed phrases, set up his own wallets, and moved assets in various transfers in 2024 and 2025.
The investigators have managed to recover about $925,426 worth of the funds with ongoing efforts to trace more money. Yaroch voluntarily contacted Department of Justice officials and admitted making poor decisions involving cryptocurrency. Investigators reported that he revoked consent to recover the wallet seed phrases and requested legal counsel.
Searches for ChatGPT Conversations Extend Investigation
The investigators managed to extract the ChatGPT conversations from Yaroch’s mobile in the course of their investigation. Yaroch asked questions regarding his plans to invest $1 million and move to Europe. With his discussions involving Portugal, Italy, Turkey, and Greece. In addition, the investigators uncovered travel reservations for Portugal. Along with documents empowering him to act on behalf of the Portuguese tax authorities. It is also alleged that Yaroch transferred approximately $1.02 million to Suilend, a lending protocol on the Sui blockchain. While investigators found more cryptocurrency stored in his Kraken wallet.
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