FBI agent accused of stealing nearly $1 million in cryptocurrency

An FBI agent stole more than $900,000 in cryptocurrency from accounts the agency was monitoring after he said he became frustrated by what he saw as government inaction over the misuse of crypto accounts, according to court records made public on Monday.

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The agent, Patrick Steven Yaroch, came across the crypto holdings while a member of the FBI’s national security investigative squad focused on an “adversarial nation” and grew “frustrated when he could not do more to disrupt” an unnamed person’s use of the crypto accounts, according to an affidavit in Yaroch’s case. Using his internal agency access, he later allegedly transferred the crypto holdings to his personal account.

The FBI fired Yaroch, and he was arrested last week. A criminal complaint lists charges against him related to the interstate transport of stolen goods and the receipt of stolen goods.

An attorney for Yaroch was not listed in court records. CNN has contacted an email associated with Yaroch for comment.

The FBI gathers a slew of intelligence on cryptocurrency accounts allegedly used by criminal and state actors in Russia, China and elsewhere. But when and how to act on those accounts – whether to seize them or use them to collect more intelligence – is often decided on a case-by-case basis.

The affidavit also reflects how artificial intelligence and cryptocurrencies are changing criminal investigations.

The month before his arrest, Yaroch allegedly asked ChatGPT: “If you had a bucket of money (around $1 million) and you wanted to leave the USA and become a resident or citizen of an EU country, what would you do?”

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ChatGPT responded, according to the affidavit, with an answer catered to Yaroch’s age and lifestyle.

“At 37, with a young family, a goal of potentially retiring around 40, and a clear interest in eventually building a slower-living vineyard/agricultural lifestyle in places like Cilento or Portugal’s Dão region…” the AI agent reportedly said.

“As soon as the FBI became aware of these allegations, we immediately took action, began an investigation, and ultimately executed an arrest warrant for this individual last week,” an FBI spokesperson told CNN. “We hold our employees to the highest ethical standards, and this conduct is not tolerated at the FBI. We are conducting a thorough investigation in the aftermath, and as this is an ongoing matter, we will have no further comment.”

The affidavit includes emotional details the FBI says were gathered from interviews with Yaroch and a former colleague from the FBI’s Boston Division in which Yaroch confided.

“I f—d up,” Yaroch told FBI agents when they interviewed him at his house last month, according to the affidavit.

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