Federal prosecutors accused Patrick Steven Yaroch, a former supervisory special agent of the FBI, of using seed phrases obtained through bureau systems to access cryptocurrency wallets identified during federal investigations and transfer funds to accounts under his control. The alleged transfers, with approximately $925,426 in cryptocurrency recovered, are said to have begun in late 2024 or early 2025. The former agent confessed to making poor decisions during an interview with the Justice Department on July 28, stating that frustration over the FBI’s inability to act against the wallets led him to take matters into his own hands. Placed on administrative leave on July 29 and terminated two days later, Yaroch was arrested on July 31 and faces charges of interstate transportation of stolen property and receipt of stolen property.
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