FBI Counterintelligence Agent Arrested Over Alleged $1M Cryptocurrency Theft

A senior FBI counterintelligence agent with top-secret security clearance has been arrested after allegedly stealing more than $1 million in cryptocurrency from digital wallets linked to individuals investigated by the agency, according to a federal court filing.

Patrick Steven Yarmoch, a supervisory special agent assigned to the FBI’s Counterintelligence and Espionage Division at its Washington headquarters, is accused of accessing cryptocurrency wallet keys stored within FBI systems and transferring digital assets to accounts under his control. Court documents filed in the U.S. District Court for the Eastern District of Virginia state that Yarmoch allegedly carried out as many as a dozen unauthorized crypto transfers involving wallets connected to foreign targets investigated by the bureau.

Authorities said Yarmoch voluntarily approached FBI colleagues and admitted to taking the cryptocurrency. He was suspended before being terminated and arrested on July 31. The criminal complaint, filed on Aug. 1, alleges that he exploited privileged access gained through his role investigating an unnamed foreign adversary nation.

Investigators said the stolen funds were moved through cryptocurrency platforms, including Kraken, as well as Suilend, a decentralized finance (DeFi) protocol built on the Sui blockchain, using a Slush wallet.

The investigation also uncovered internet searches and AI chatbot conversations that prosecutors say suggest Yarmoch was considering leaving the United States. One query allegedly asked how someone with approximately $1 million could relocate to Europe and obtain residency or citizenship, with Portugal reportedly recommended as a destination.

Court records further claim Yarmoch had travel plans for Portugal next month and had recently visited Germany, Portugal, and Grenada without reporting the trips to the FBI, a requirement for employees holding sensitive security clearances.

Yarmoch, an Ashburn, Virginia, resident who previously served in the FBI’s Boston office on national security investigations, is being held in detention in Alexandria, Virginia, as federal prosecutors pursue the case. The allegations have raised fresh concerns over insider threats, the security of digital asset evidence, and internal safeguards surrounding cryptocurrency held during federal investigations.