FBI fires unit chief accused of stealing nearly $1 million in Russia-linked crypto

A former FBI agent has been charged with taking nearly $1 million in cryptocurrency from a target linked to Russia, according to reports. Patrick Steven Yaroch, who worked for the bureau from 2017 to 2025, is accused of using FBI systems to steal the funds. The charges, filed in Virginia, include charges for interstate transportation of stolen goods and receipt of stolen property. The alleged crime took place between January 1, 2025, and July 31, 2026.

Yaroch became disgruntled in late 2024 because the FBI was unable to disrupt the target's cryptocurrency accounts. He allegedly accessed internal FBI records, memorized seed phrases, and created his own wallet to transfer the money. Yaroch estimated the stolen sum to be slightly under $1 million, although the exact figure remains unclear due to commingling with his personal assets.

Investigators traced the cryptocurrency transfers and found Yaroch had moved approximately $1.02 million to a decentralized lending platform. His Kraken account held about $188,570. The seized cryptocurrency was transferred to US government-controlled wallets, while the rest remained in his personal account.

The investigation began when Yaroch requested a private meeting with a Justice Department employee on July 28. He admitted to making poor decisions involving cryptocurrency and sought legal advice. He later confessed to mishandling the funds to FBI headquarters. Agents seized various items from Yaroch's home, including a hardware wallet and documents with cryptocurrency seed phrases. The FBI placed Yaroch on administrative leave, dismissed him on July 31, and arrested him at his home later that day.