Former FBI Agent Charged in Alleged Cryptocurrency Theft

WASHINGTON – Federal prosecutors have charged a former FBI supervisory special agent with allegedly stealing nearly $1 million in cryptocurrency from accounts associated with Russian entities. Prosecutors state that Kevin Patrick Kelley, 52, transferred the digital assets to his personal cryptocurrency accounts.

Authorities assert that Kelley conducted these transfers between 2021 and 2023. Court documents indicate Kelley allegedly identified cryptocurrency accounts belonging to what he believed were Russian cyber actors or money launderers. He then used his access to FBI systems to gain control of these accounts.

Prosecutors maintain Kelley believed the FBI would not or could not act against these adversarial cryptocurrency accounts. He then allegedly initiated transfers of the cryptocurrency. He moved approximately $840,000 to his personal digital wallets and over $140,000 to a separate cryptocurrency exchange account he controlled, according to court filings.

The charges specify Kelley faces counts of money laundering, wire fraud, and theft of government property. The Department of Justice unsealed the indictment against him on Friday. Kelley previously served as a supervisory special agent at the FBI. His responsibilities included investigating cybercrimes and financial fraud.