Kash Patel busted for quietly hiding his own big crypto bet that's tied to law enforcement contracts

By BREANNE DEPPISCH, US SENIOR POLITICAL REPORTER Published: 18:35, 2 July 2026 | Updated: 18:35, 2 July 2026 FBI Director Kash Patel failed to properly disclose a six-figure stock investment he made in a bitcoin-fueled business intelligence company last year for roughly seven months, according to government financial records.  The inadvertent omission that comes after a string of high-profile blunders by the head of the nation's largest law enforcement agency.  A spokesperson for the FBI confirmed to the Daily Mail in a statement Thursday that the investment paperwork in question has since been amended to reflect Patel's purchase, and described the error as a 'miscommunication.'  'The correct paperwork was filed subsequently with DOJ,' this person said, 'and approved by the Alternate Designated Agency Ethics Official of the Department of Justice.' At issue was Patel's November purchase of between $100,001 and $250,000 in MicroStrategy stocks.  According to NOTUS, which first reported the news, Patel failed to report the investment to federal regulators until May 2026 — roughly seven months later. Patel described the lack of disclosure to a Office of Government Ethics official as an 'inadvertent omission.'  But news of the purchase, and the subsequent disclosure, comes amid broader scrutiny into Patel's actions as FBI director. FBI director Kash Patel and Alexis Wilkins arrive at the White House ahead of the UFC Freedom 250 event in Washington, DC FBI Director Kash Patel answers questions at a press conference in Washington, DC  Justin Gaethje and FBI Director Kash Patel shake hands during the UFC Freedom 250 event at the White House Former FBI agents and congressional Democrats have criticized Patel for a flurry of recent actions he's taken while at the helm of the FBI, including his purported use of government planes for private travel, and his rush to share information certain about high-profile investigations — most recently, a string of arrests made in connection with an alleged UFC attack plot at the White House.  Reports of the investigation appeared to catch the Secret Service, which assisted the FBI in leading the investigation, off guard.  They were also accompanied by a letter sent to the Office of Government Ethics by a senior Justice Department official. Deputy Assistant Attorney General William Taylor has cleared FBI Director Kash Patel of violating federal conflict-of-interest law, telling the Daily Mail an amended disclosure resolved his concerns. 'As the Alternate Designated Agency Ethics Official of the Department of Justice, I have reviewed the updated information contained in the amendment and I continue to believe that Director Patel is in compliance with applicable laws and regulations governing conflicts of interest,' Taylor said in a statement. The finding relates to the STOCK Act, which requires Cabinet officials and members of Congress to disclose any stock trade over $1,000 to the Office of Government Ethics within 45 days. First-time violators face a $200 fine. Fireworks explode on the South Lawn of the White House during a UFC Freedom 250 event  FBI Director Kash Patel speaks to reporters at a DOJ press conference A portrait of President Donald Trump is seen outside the Justice Department headquarters in Washington, DC  FBI Director Kash Patel, DIA Director Lt. Gen. James Adams III, Then-Director of National Intelligence Tulsi Gabbard, and CIA Director John Ratcliffe testify before the Senate Patel's late disclosure was unintentional and went unnoticed until it was flagged, an FBI official with knowledge of the matter told NOTUS.  No fine has been issued to date, and once the lapse was discovered, Patel filed the 'correct paperwork' to amend the record. Whether he could still face a penalty remains unclear. The stock behind the violation was MicroStrategy, the software firm that has staked its balance sheet on Bitcoin and is widely treated by investors as a proxy for the cryptocurrency itself. The lapse comes as Patel's FBI has ramped up its own war on crypto crime.  Agents last year dismantled a laundering network accused of funneling more than $1.5 million to Hamas since October 2024, and the bureau has pursued similar cases against fraudsters exploiting crypto's unregulated, decentralized structure. 'Crypto fraudsters have been scamming and taking advantage of the American people for too long,' Patel wrote on social media last month. 'No more! This FBI will find you, and we will bring you to justice!' No comments have so far been submitted. Why not be the first to send us your thoughts, or debate this issue live on our message boards. By posting your comment you agree to our house rules. Do you want to automatically post your MailOnline comments to your Facebook Timeline? Your comment will be posted to MailOnline as usual. Do you want to automatically post your MailOnline comments to your Facebook Timeline? 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