A former employee of the US Federal Bureau of Investigation (FBI), Patrick Stephen Yaroch, has been charged in connection with the illegal transfer of cryptocurrency totalling approximately $925,000. The investigation also reports that before his arrest, he asked ChatGPT about the possibility of moving to a country in the European Union (EU).
WHAT THE FORMER FBI EMPLOYEE IS CHARGED WITH
According to The Insider, the criminal case materials show that Patrick Stephen Yaroch has been charged with interstate transport of stolen property and receipt of knowingly stolen property. According to the investigation, in late 2024 or early 2025, while taking part in an investigation into the activities of an unnamed "hostile country", he gained access to cryptocurrency wallets through internal FBI systems.
The investigation claims that Yaroch found the keys to the wallets and made between 10 and 12 transfers to accounts under his control. The total value of the cryptocurrency transferred was approximately $925,000.
WHAT IS KNOWN ABOUT THE CRYPTOCURRENCY WALLETS
The court documents do not disclose who owned the cryptocurrency wallets, why the FBI had the access keys to them, or why the agency did not freeze the funds. The case materials only mention a connection between the accounts and an unnamed "hostile country".
Meanwhile, NBC News, citing two sources, reports that Russia is the country in question. This information is not confirmed in the court documents. According to the case materials, Patrick Stephen Yaroch himself stated that he had never had contact with the account owners or other foreign individuals.
WHAT INVESTIGATORS FOUND ON THE PHONE
Investigators found correspondence with ChatGPT on the defendant's phone. According to the case materials, he asked how best to manage a sum of approximately $1 million, and then enquired about the possibility of leaving the country and obtaining the right to reside in or citizenship of an EU country.
In response, the chatbot suggested considering Portugal, given the user's stated plans to retire at around 40 years of age, purchase a plot of land of between 2 and 5 hectares, and take up winemaking.
By the time of the search, Yaroch had already bought plane tickets to Portugal with a departure date of 3 September; however, they included a return flight to the US. The investigation also found a power of attorney authorising Portuguese lawyers to represent his interests before the country's tax and customs authorities. Furthermore, the case materials state that he had been looking for work in Europe and had not notified the FBI of trips to Portugal, Germany and Grenada, despite being required to do so.
HOW THE INVESTIGATION UNFOLDED
Patrick Stephen Yaroch independently contacted an official at the US Department of Justice via Signal and said he had made "very bad decisions" relating to cryptocurrency wallets. According to the documents, during the meeting he admitted to feeling ashamed, and then filled out the FBI's internal voluntary statement form.
During the search, Yaroch handed over his official ID, unlocked his phone, and provided information about his cryptocurrency wallets. On 31 July, the FBI dismissed the employee, and he was detained the same day. The court has for now remanded the defendant in custody. His lawyer has declined to comment on the case.
