Key Insights
- An FBI supervisory agent allegedly took about $1 million in crypto from an overseas suspect.
- Court records showed he asked ChatGPT about investing the funds and relocating to Europe.
- The case followed other alleged prediction-market misconduct involving federal employees.
The U.S. Department of Justice charged former FBI supervisory agent Patrick Yaroch after he allegedly took about $1 million in crypto from an overseas suspect’s accounts.
Court documents said Yaroch voluntarily confessed to a Justice Department employee in late July. He reportedly said the conduct was “eating him up inside.”
The FBI dismissed Yaroch after learning about the allegations. Authorities arrested him on July 31 after searching his home, according to court records reviewed by The Wall Street Journal.
The case emerged as U.S. agencies expanded investigations into crypto fraud, laundering networks and prediction-market misconduct.
FBI Agent Allegedly Took Crypto From Overseas Suspect
According to reports, Yaroch stole the funds from the wallet of a suspect overseas target. He gained access to the wallet using a pass phrase the FBI obtained during the investigation.
The crime occurred over more than one year, with the agent reportedly starting to steal funds around late 2024 or early 2025, according to his confession. He took about $1 million from the suspect’s wallet across about 12 transactions.
Yaroch reportedly informed investigators that he was frustrated that the FBI could not act against adversarial crypto accounts. However, he later confessed to colleagues and was cooperating with investigators before his arrest on July 31.
Court papers also show that he used ChatGPT to obtain money-laundering advice on the crypto scam funds. Questions asked include whether to move to Europe and how to spend the funds.
ChatGPT had recommended Portugal as its number one option. It is unclear whether he planned to move there, but the court affidavit shows he had bought a two-way ticket for Portugal departing September 3.
Interestingly, the DOJ has already charged him with interstate transportation of stolen goods, receipt of stolen goods, money, and securities. However, there are no crypto-related charges against him yet.
US Crackdown on Crypto Scams with Over $800 Million Recovered Since 2025
Meanwhile, the incident comes amid US authorities’ increased focus on crypto crimes as the wait for crypto regulations continues. US regulatory authorities, including the DOJ and the Securities and Exchange Commission (SEC), have focused mostly on crypto scams, fraud, and international criminal networks since Trump became president.
This approach has already yielded multiple gains, with the Scam Center Strike Force reporting that it has recovered over $800 million since its launch last year. The task force targets crypto scams and fraud originating from Southeast Asia, with the DOJ, FBI, US Secret Service, and the US Attorney’s Office all involved.
In its most recent report, the DOJ stated that it seized over $25 million following investigations into international crypto scams targeting US and Canadian residents.
However, the number of federal employees involved in crypto crimes is also increasing. While the FBI agent is the first to be arrested for a crypto scam, he is not the first employee to be arrested in a crypto-related case.
Earlier this year, a serving member of the US Armed Forces was arrested for insider trading. The soldier had won about $400,000 in profits from Polymarket by using insider information to bet on markets related to the US operation in Venezuela.
A longtime teleprompter operator for President Trump also reportedly settled with the Commodity Futures Trading Commission (CFTC) after using privileged information to bet on the Kalshi market, making around $100,000 in profits.
Oluwapelumi Adejumo is an experienced cryptocurrency journalist who has contributed to leading blockchain news platforms, including CryptoSlate and BeInCrypto.
