Former FBI Supervisor Charged With Stealing Nearly $1M in Crypto While Using ChatGPT for Investment Advice
A supervisory special agent with the FBI's Counterintelligence Division has been charged with theft of approximately $1 million in cryptocurrency from wallets tied to federal investigations.
High-Ranking FBI Official Faces Crypto Theft Charges
Patrick Steven Yaroch, a supervisory special agent within the FBI’s Counterintelligence and Espionage Division, has been charged by federal prosecutors with stealing nearly $1 million in cryptocurrency from wallets associated with Bureau counterintelligence investigations. The alleged thefts occurred over a 16-month period spanning early 2025 through July 2026, during which Yaroch maintained a Top Secret security clearance.
How the Theft Was Allegedly Executed
According to court filings, Yaroch exploited his institutional access by retrieving cryptocurrency wallet seed phrases from FBI systems connected to investigations involving an unidentified foreign adversary. Prosecutors allege Yaroch memorized these recovery phrases, established his own cryptocurrency wallet, and transferred stolen digital assets into personal accounts under his control approximately ten times. The accumulated illicit holdings grew to approximately $1 million throughout the theft period. When investigators searched Yaroch’s residence and electronic devices, they recovered a Trezor hardware wallet containing funds alongside handwritten cryptocurrency seed phrase documentation. His Kraken exchange account contained approximately $188,570 in combined holdings, including roughly $166,000 in U.S. dollars, nearly $18,000 in USDC stablecoin, and smaller quantities of Bitcoin and other digital currencies.
On July 28, 2026, Yaroch contacted a Department of Justice employee via Signal requesting a personal meeting. Upon gathering at FBI headquarters, Yaroch reportedly began confessing to his involvement in the theft scheme and acknowledged taking the cryptocurrency funds.
ChatGPT Chats Reveal Apparent Relocation Plans
The investigation took an unusual turn with the discovery of ChatGPT conversations stored on Yaroch’s phone. On May 28, he queried the AI tool about optimal strategies for investing or spending approximately $1 million to achieve maximum profit and returns. Less than a week later, he posed questions about relocating to Europe, specifically inquiring about pathways to obtain residency or citizenship within European Union member nations. Subsequent ChatGPT searches included queries about visa requirements for Americans transiting through Turkey, assistance drafting employment-related correspondence, and specific questions about opportunities and life in Greece. Investigators also uncovered evidence of a planned family trip to Portugal, legal documents granting power-of-attorney authority related to Portugal, and documentation of international travel that had not been previously reported to government authorities.
Federal prosecutors charged Yaroch with interstate transportation of stolen goods and receipt of stolen goods. This case illustrates critical vulnerabilities in insider threat protections and access control mechanisms within federal agencies responsible for managing cryptocurrency-related investigations.
The incident underscores persistent risks to digital asset security and regulatory concerns over cryptocurrency custody within government systems.
Source: U.S. Prosecutors, via Decrypt. Not financial advice.