The U.S. Department of Justice has indicted FBI supervisory special agent Patrick Steven Yaroch on allegations that he stole nearly $1 million in cryptocurrency from government-controlled wallets tied to an investigation. Prosecutors say the assets were moved over a series of transactions in 2024 and 2025 after Yaroch learned seed phrases linked to wallets the government had access to.
Investigators also allege that, after the transfers, Yaroch used ChatGPT to look into how to invest about $1 million, relocate to Europe, and plan finances abroad. The case remains pending, and Yaroch is presumed innocent unless proven guilty.
Alleged misuse of access
According to a federal affidavit, Yaroch joined the FBI in 2017 and worked in the bureau’s Counterintelligence and Espionage Division. The filing says he held a Top Secret clearance and had access to cryptocurrency wallets associated with an adversarial nation as part of government work.
Prosecutors allege that he abused that access by learning the wallets’ recovery seed phrases, creating his own wallets, and moving cryptocurrency out of government-controlled holdings. The indictment centers on alleged transfers that took place across 2024 and 2025.
Where the funds allegedly went
Investigators say roughly $1.02 million was transferred to Suilend, a lending protocol on the Sui blockchain. They also reported finding additional cryptocurrency in a Kraken wallet allegedly connected to Yaroch.
So far, authorities say they have recovered about $925,426 and are continuing efforts to trace and recover more of the missing assets. The affidavit describes the recovery work as ongoing rather than complete.
ChatGPT searches and travel plans
A notable part of the case involves material investigators say they extracted from Yaroch’s mobile phone. According to the filing, the records included ChatGPT conversations about investing $1 million, moving to Europe, and organizing post-transfer finances.
The affidavit says those chats referenced residency and relocation questions involving Portugal, Italy, Turkey, and Greece. Investigators also cited travel reservations for Portugal as part of the broader timeline they are presenting.
Statements and next steps
The source article says Yaroch voluntarily contacted Department of Justice officials and admitted making poor decisions involving cryptocurrency. It also says he later revoked consent to recover wallet seed phrases and requested legal counsel.
The criminal charges are now pending in federal court. Based on the affidavit, the next confirmed step is the continuation of the prosecution and the government’s effort to trace any unrecovered funds while the allegations are tested through the legal process.
Source: TheNewsCrypto