A former U.S. Secret Service agent pled guilty Monday to money laundering and obstruction of justice in connection with a digital currency theft during the federal investigation of Silk Road.

The agent admitted in his plea agreement that in January 2013, he used another person’s administrator account on Silk Road to move 20,000 bitcoin to a “wallet” that he controlled. At the time, the stolen bitcoin was worth approximately $350,000; when the agent eventually exchanged the bitcoin for U.S. dollars later in 2013, it was worth over $800,000. According to the Justice Department, the agent fraudulently obtained access to Silk Road, gained access to various accounts by resetting their passwords and then transferred bitcoin out of the compromised accounts and into his wallet. The agent’s actions underscore the importance of strict security measures on networks that control the movement of bitcoin between accounts.

Moreover, fintech companies are not always aware of the potential risk involved in interacting with public officials or people who hold themselves out as public officials – a threat which is exemplified by this particular agent’s use of his expertise and information gained in the course of a government investigation to facilitate a large-scale theft. Operators in the virtual currency space should exercise caution and approach interactions with law enforcement prepared to deal with the legal implications of those interactions, employing attorneys familiar with law enforcement conduct where appropriate.