Patrick Steven Yaroch, a 37-year-old former FBI supervisory special agent, pleaded guilty to wire fraud and money laundering on November 6, 2026, after admitting to stealing approximately $2.47 million in cryptocurrency from cases he was assigned to investigate.
Court filings put the total loss at $2,474,380.66. The scheme involved accessing wallet credentials and seed phrases belonging to individuals connected to FBI investigations and using them to carry out around 100 illicit transfers linked to 35 separate criminal probes.
How the scheme worked
During investigations, Yaroch obtained seed phrases—strings of words that grant full control over a crypto wallet—and used that privileged access to move funds without bank approval or secondary authorization. The stolen assets included money belonging to at least 10 crime victims, not just suspects.
According to the filings, the scheme began no later than December 2024 and continued until his arrest around late July 2026. The guilty plea covers a broader scope of theft than earlier charges, which had cited smaller amounts.
Recovery efforts and personal plans
Investigators have recovered a meaningful share of the funds. About $188,600 was recovered from the Kraken exchange, and roughly $933,800 was pulled from the Suilend lending protocol. Authorities also seized a Trezor hardware wallet along with relevant seed phrases. Together, the Kraken and Suilend recoveries account for approximately $1.12 million of the stolen total.
Yaroch reportedly asked ChatGPT for advice on investing roughly $1 million and relocating to the EU, with original accounts tying those plans to Portugal specifically.
Background and next steps
Yaroch held the rank of supervisory special agent, a position with oversight responsibilities and access to sensitive case material. The FBI terminated him on July 31, 2026, after he surrendered to authorities. His sentencing is scheduled for March 4, 2027, and he faces a maximum of 20 years in prison.
The case highlights how seized digital assets differ from traditional evidence: a seed phrase gives an investigator the same power as the wallet owner, and internal controls must account for that. The involvement of a centralized exchange like Kraken also underscores how regulated platforms can become choke points where stolen assets are identified and frozen. The gap between the stolen amount and the recovered portion will shape how much victims ultimately get back.
