A former FBI supervisory special agent has been accused of stealing roughly $1 million in cryptocurrency from wallets linked to a foreign intelligence target. The theft, according to court documents, was carried out by exploiting access to seed phrases that were supposed to remain within an active counterintelligence investigation.
The Allegations
The agent, whose name has not been publicly released, is charged with wire fraud and money laundering. Prosecutors allege that between March and June 2026, the former agent used knowledge of the seed phrases—recovery keys for cryptocurrency wallets—to transfer funds out of wallets that were under FBI surveillance as part of a foreign intelligence case. The wallets belonged to a target of the investigation, though it is unclear whether the target was aware of the surveillance.
How It Happened
The seed phrases were reportedly held in evidence or as part of the case file. The former agent allegedly copied them and then used them to access the wallets remotely, moving the cryptocurrency through multiple addresses to obscure the trail. The theft was discovered during a routine audit of the case, and the FBI’s internal affairs unit began an investigation. The agent had left the bureau before the theft came to light.
What’s Next
The case is being handled by the U.S. Attorney’s Office for the District of Columbia. A preliminary hearing is scheduled for next month. The former agent has not entered a plea. The FBI has declined to comment on whether the compromised intelligence case was compromised further or whether the stolen funds have been recovered. The incident raises questions about how sensitive digital evidence is handled within federal law enforcement.
