Former FBI agent accused of diverting nearly $1 million in cryptocurrencies explained why he did it: "I was frustrated"
A former supervisory agent of the Federal Bureau of Investigation (FBI) faces federal charges for allegedly transferring nearly a million in cryptocurrencies linked to a counterintelligence investigation to accounts under his control. During a hearing held this Tuesday at the U.S. District Court for the Eastern District of Virginia in Alexandria, he stated that he was "frustrated" by the agency's lack of action against the wallets under investigation.
The former FBI agent attributed the transfers to his "frustration"
- A federal judge concluded that there was probable cause for the case against Patrick Steven Yaroch, 37, to proceed.
- The decision allows the case to move forward but does not imply that he has been found guilty.
According to the affidavit presented in the case, Yaroch voluntarily contacted an employee of the National Security Division of the Department of Justice (DOJ) and admitted to making "very bad decisions" related to cryptocurrency wallets. According to court documents, Yaroch stated that he had been feeling guilty for months and needed to confess what had happened. The shame "was consuming him from the inside" and he wanted to "get it off his chest," according to the affidavit. Prosecutors maintain that Yaroch became aware in November 2024 of the existence of cryptocurrency wallets linked to the target of an FBI investigation concerning a nation considered adversarial to the United States. In that context, Yaroch claimed he began to feel frustrated because, according to him, the FBI "could not or did not want to act" against those accounts.
How the former FBI agent allegedly transferred nearly $1 million in cryptocurrencies
Thus, according to the document, Yaroch searched internal FBI systems for the keys needed to access the investigated wallets and memorized their recovery phrases. Subsequently, he allegedly imported those credentials to wallets under his control and made between ten and twelve transfers from late 2024 or early 2025. The exact amount remains under investigation because the assets were mixed with personal funds and their value fluctuated.
ChatGPT inquiries included in the case file
As part of the investigation reported by NBC Washington, FBI agents executed search warrants on Yaroch's residence, as well as on his phones, computers, and vehicle. During the analysis of the devices, investigators found several inquiries made in ChatGPT between May and June 2026. One of them was recorded on June 4. According to the affidavit, Yaroch wrote: "If you had an amount of money ---around $1 million--- and wanted to leave the United States to become a resident or citizen of a country in the European Union, what would you do?" The file indicates that ChatGPT responded by recommending Portugal as one of the most convenient options for that situation. The prosecution included that exchange as part of the evidence presented in the case.
-- Price
The judge considers whether Patrick Yaroch will regain his freedom
According to NBC Washington, during the hearing, Yaroch turned to look at his wife and parents before breaking down in tears and covering his face with his hands. The judge decided to keep him detained provisionally while requesting additional information to determine whether he can regain his freedom under certain conditions during the judicial process.
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