Federal prosecutors charged former FBI supervisor Patrick Yaroch with moving about $925,426 in cryptocurrency from accounts that NBC News sources linked to Russia.
Key Points:
- Yaroch allegedly used FBI-held wallet keys to make 10 to 12 transfers into accounts under his control.
- He later self-reported the conduct and turned over credentials and wallet details.
- Investigators recovered the funds, and the FBI fired Yaroch after the search.
FBI Crypto Charges
Yaroch faces charges of interstate transportation of stolen goods and receipt of stolen goods in the Eastern District of Virginia, according to court records. He has not entered a plea.
An FBI affidavit says Yaroch told a Justice Department employee he became frustrated because the bureau “could not or would not act against adversarial cryptocurrency accounts.” The affidavit says he accessed FBI systems, found keys needed to control the wallets and moved the funds to himself in up to a dozen transactions. No specific cryptocurrency was identified.
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Yaroch Crypto Motive
Yaroch later submitted an online self-report and met voluntarily with FBI headquarters personnel, saying he had “screwed up” and wanted to disclose his actions because the shame was “eating him up inside.”
Prosecutors said Yaroch never contacted anyone linked to the foreign accounts, making the alleged misconduct an insider-access case rather than a conventional phishing or hacking scheme. The distinction matters because control of a private key can allow funds to move without approval from a bank, exchange or government agency.
The FBI said it acted immediately after learning of the allegations, fired Yaroch and began a broader internal investigation because the alleged conduct violated bureau ethics standards.
Court filings place the alleged transfers in 2024 or 2025, when Yaroch said he made 10 to 12 withdrawals using passcodes collected during the underlying investigation. On Aug. 3, Magistrate Judge Lindsey R. Vaala ordered temporary detention, and after an Aug. 4 hearing, Yaroch remained jailed while the court considered release conditions. The case remains at an early stage.
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