Former FBI Agent Pleads Guilty to $1M Crypto Theft Using Internal Systems

Woofun AI reports that Patrick Steven Yaroch, a former FBI supervisory agent, has pleaded guilty to exploiting internal systems to access cryptocurrency wallets associated with an adversarial country. This insider threat involved the unauthorized diversion of funds from government-controlled accounts to his personal holdings.

The scheme unfolded between late 2024 and early 2025, encompassing 10 unauthorized transfers totaling approximately $1 million in digital assets. Per Woofun AI, Yaroch deposited illicit proceeds into Suilend to generate yield before his self-reporting triggered administrative leave last Wednesday and subsequent arrest on Friday. Federal agents seized devices, seed phrases, and a Trezor wallet from his Virginia residence, enabling access to his Suilend and Kraken accounts.

Authorities recovered roughly $925,000 through Yaroch’s cooperation, while court filings reveal he consulted ChatGPT in May for investment strategies, receiving suggestions to build a vineyard in Cilento or Portugal’s Dão region. This incident mirrors prior federal agent crimes: former DEA agent Carl M. Force diverted $700,000 in Bitcoin during the Silk Road investigation, receiving six and a half years, while former US Secret Service agent Shaun W. Bridges stole $350,000 in BTC and served six years.

The case underscores persistent vulnerabilities within federal law enforcement regarding digital asset custody. Insider threats involving crypto theft by federal agents remain a critical operational risk requiring enhanced internal controls.