Ex-FBI agent accused of diverting nearly $1 million in crypto cites 'frustration'

A former FBI supervisory agent is facing federal charges for allegedly diverting almost $1 million in cryptocurrency tied to a counterintelligence probe into accounts he controlled. The agent, identified as Yaroch, admitted to making "very bad decisions" regarding the cryptocurrency wallets during an appearance in federal court.

“

I was frustrated

Yaroch reportedly told investigators he had been feeling guilty for months and needed to confess, stating the shame was "consuming him from the inside" and he wanted to "get it off his chest." According to the affidavit, Yaroch learned of the cryptocurrency wallets in November 2024, which were connected to an FBI investigation into a nation considered an adversary of the United States.

“

very bad decisions

Prosecutors allege that Yaroch became frustrated because, in his view, the FBI "could not or would not act" against these accounts. He then allegedly accessed FBI internal systems to obtain the necessary keys to the wallets, memorized their recovery phrases, and imported them into wallets under his control. Between late 2024 and early 2025, he made ten to twelve transfers, though the exact amount is still under investigation due to commingling with personal funds and fluctuating asset values.

“

was consuming him from the inside

During the investigation, FBI agents searched Yaroch's home, phones, computers, and vehicle. Analysis of these devices revealed ChatGPT queries made between May and June 2026. One query on June 4 asked, "If you had an amount of money, around $1 million, and wanted to leave the United States to become a resident or citizen of an EU country, what would you do?" ChatGPT reportedly suggested Portugal as a convenient option, a detail the prosecution included as evidence.

“

get it off his chest