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Cyber Attack & Data Breach · bleepingcomputer.com

Former FBI Agent Pleads Guilty to Stealing Nearly $2.5 Million in Cryptocurrency

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Summary

Former FBI agent Patrick Steven Yaroch pleaded guilty to stealing nearly $2.5 million in cryptocurrency using passphrases obtained from FBI investigative systems and another data-sharing platform, compromising multiple investigations, prosecutors said.

Key points

  • Yaroch admitted making approximately 100 fraudulent transfers using credentials related to 35 FBI investigations.
  • He used passphrases from FBI case-management systems and another platform for sharing investigative data to access cryptocurrency wallets.
  • The Justice Department said he obtained approximately $2,474,380.66 in proceeds and attempted to launder funds by exchanging them for other cryptocurrencies.
  • Prosecutors said his actions compromised investigations involving nation-state adversaries and criminal groups, as well as FBI sources and methods.
  • Yaroch pleaded guilty to wire fraud and money laundering; he was fired after being placed on administrative leave.
  • He is scheduled to be sentenced on March 4 and faces a maximum of 20 years for each charge.

Article Details

Victim Organization
FBI investigations and investigative sources and methods were compromised; cryptocurrency wallet owners whose funds were taken were also victims.
Incident Type
Insider theft of cryptocurrency using passphrases obtained from FBI case-management and investigative-data-sharing systems; wire fraud and attempted money laundering.
Data Types Exposed
  • Passphrases used to access cryptocurrency wallets
  • FBI investigative data
  • FBI sources and methods
Affected Records
Credentials related to 35 separate FBI investigations were used in approximately 100 fraudulent transfers.
Operational Impact
Prosecutors said the conduct compromised multiple FBI investigations involving nation-state adversaries and criminal groups, as well as FBI sources and methods used in criminal investigations and foreign intelligence collection.
Ransom Or Extortion
None reported.
Claim Status
confirmed

Threat Actors

Patrick Steven YarochA former FBI agent who pleaded guilty to stealing cryptocurrency from wallets of fraud victims or suspects under FBI investigation, using passphrases obtained from FBI systems. He admitted conducting approximately 100 fraudulent transfers.