Former FBI Agent Allegedly Stole $1M Crypto via Seed Phrase Theft

Ex-agent Patrick Yaroch accused of accessing FBI systems to steal crypto seed phrases from counterintelligence cases, moving funds ~10 times and holding $188k on Kraken.

Woofun AI reports that former FBI special agent Patrick Steven Yaroch faces accusations of stealing nearly $1 million in cryptocurrency. Prosecutors allege that between early 2025 and July 2026, Yaroch exploited his access to FBI systems to obtain seed phrases for encrypted wallets tied to counterintelligence investigations, transferring the assets to personal accounts on approximately 10 occasions.

Investigators discovered a Trezor hardware wallet and handwritten seed phrases at Yaroch’s residence, alongside a Kraken account holding roughly $188,570. Records indicate he consulted ChatGPT on strategies to maximize returns on $1 million and on relocating to an EU country for residency or citizenship.