Fraud and Embezzlement
Crypto theft: a former FBI agent admits moving about $2.47 million from wallets whose credentials were gathered in 35 investigations
Crypto theft: a former FBI agent admitted moving about $2.47 million from wallets whose credentials were gathered in 35 investigations, and to laundering.
In brief
- Patrick Steven Yaroch, 37, of Ashburn, Virginia, a former FBI agent, pleaded guilty on November 5, 2026 to wire fraud and money laundering, according to the U.S. Attorney's Office for the Eastern District of Virginia.
- According to the release, he used cryptocurrency wallet credentials collected in investigations, made about 100 fraudulent transfers from wallets tied to 35 investigations, and obtained about $2.47 million.
- To conceal the source of the funds, according to the release, he swapped the coins for other cryptocurrencies and moved them through further transactions.
- Sentencing is set for March 4, 2027. He faces a maximum of 20 years in prison, and the actual sentence will be determined by the court.
What he admitted
According to the U.S. Attorney's Office, Yaroch worked in the FBI's Counterintelligence and Espionage Division from February 2025 to July 31, 2026. The division's systems held credentials for crypto wallets collected during investigations. The scheme began, according to the release, no later than December 2024. He moved funds from wallets belonging to investigation subjects and to adversarial nation-state actors, and from at least one wallet the FBI itself created for an operation (U.S. Attorney's Office, Eastern District of Virginia).
According to the release, between November 25, 2025 and January 13, 2026 about $93,082 was moved to one of his accounts and used to pay debts.
The plea agreement
The Block reported that as part of the plea Yaroch agreed to pay at least $2.4 million in restitution and to a forfeiture of a similar amount, including coins seized on July 31, 2026 and balances in bank and crypto exchange accounts (The Block). These details do not appear in the official release.
Why it matters
Moving funds between wallets and between different coins does not erase the money trail. According to the release and the report, part of the funds reached a bank account and crypto exchange accounts. Points like these, where the blockchain meets a regulated financial institution that must identify its customers, are also the key to any digital asset tracing.
Sources: U.S. Attorney's Office release, 05.11.2026, The Block, 07.11.2026.
Further reading: Cambodia crypto investment scam and extradition to the US, Locating a debtor's bank accounts, and our hidden asset tracing service.
The information in this section is general and is not legal advice. This report is based on the release of the U.S. Attorney's Office for the Eastern District of Virginia and on reporting by The Block. Yaroch has pleaded guilty and has not yet been sentenced. The sentence will be determined by the court.
