Local Pakistani crypto trader abducted and forced to transfer $340k

Ransom victim describes harrowing ordeal as kidnappers force her to transfer her life savings.

On December 25, 2024, seven suspects, including an officer from the Counter-Terrorism Department, were detained in Karachi, Pakistan, on suspicion of participating in the kidnapping of a cryptocurrency trader and demanding a ransom of $340,000.

Inspector General of Police Ghulam Nabi Memon, while confirming the arrest of a CTD officer, stated that attempts were still on to nab another police officer involved in the crime.

The victim, 30-year-old Muhammad Arsalan, was abducted from Manghopir, a well-known neighborhood in northwestern Karachi. According to Arsalan, the kidnappers forced him to transfer $340,000 from his Binance account to several wallets they controlled and released him hours later near the Quaid-e-Azam mausoleum.

Arsalan later shared additional details on Facebook, but independent sources were largely unable to verify his claims, including the specific amount transferred and the exact sequence of events. He claimed that $277,000 of the stolen amount was transferred to a specific wallet via decentralized exchanges before being moved off-chain to Binance.

Arsalan Malik’s Post | Source: Facebook

While Arsalan assured the public that law enforcement is actively working to track transactions and identify people behind wallets, experts have noted the difficulties of tracking funds through decentralized financial systems, where anonymity is often a key feature.

Arsalan also posted a screenshot of his Binance withdrawal history on Facebook; This screenshot shows forced transfers totaling over $340,000 in various cryptocurrencies, including significant amounts in USDT and other tokens. Although the screenshots provide useful evidence, investigators need to verify this data to fully verify his account.

The suspects, identified as Muhammad Rizvan Shah, Tariq Hasan Shah alias Amir, Muzamil Raza, Umer Jilani, Umer Irshad, Noman Riffat and Haris alias Ashar, were caught by the Anti-Violence Crime Cell. According to the statement made by AVCC officials, the team led by SSP Aneel Haider Minhas carried out multiple operations across Karachi to nab the suspects.

But the exact timeline of the arrests and details about the evidence linking each suspect to the crime remain unclear. The AVCC identified the individuals arrested as habitual offenders who had been incarcerated for similar crimes in the past, but public records or court documents were not immediately available to prove this identification.

Arsalan’s explanation of the abduction process also raises some unanswered questions. He claimed that weeks before the incident, a man named Hamid approached him to buy US dollars. Despite Arsalan’s refusal, Hamid insisted and eventually arranged a meeting with Arsalan’s friend Zohaib.

On December 24, 2024, three people, including Muzamil and Hammad, visited Arsalan’s office and invited him to a restaurant, where they were joined by other suspects. It is not yet known why Arsalan agreed to meet the people reported as suspects or whether any measures were taken to verify the identities of these people. Such details could be critical to understanding whether this was a pre-planned targeting of Arsalan or an opportunistic crime.

Later that night, Arsalan said he was abducted by a group of armed men in an unmarked police vehicle. They gagged him with a cloth and detained him near Saddar FIA office. There they allegedly forced him to unlock his Binance account and transfer his money to multiple wallets. After resetting his phone, they released him at 4am near a local attraction known as the Quaid-e-Azam Mausoleum. The choice of his release location and the precise steps taken to reset his phone indicate a level of planning and technological know-how – How among the kidnappers.

In an interview to Dawn, IGP Memon described the incident as a singular example of misconduct by police officers and stressed that the police force does not tolerate illegal activities. But his words were met with skepticism, given the significant role rogue cops allegedly played in the crime. Critics argue that a more transparent internal investigation is needed to restore public trust in law enforcement.

In his Facebook post, Arsalan expressed his sadness over the loss of his hard-earned money. Stating that the DIG personally supervised the investigation, he condemned those who accused him of fabricating the incident. He also clarified that no investors or relatives were involved in the case and promised to compensate others for losses suffered. Arsalan promised that he would not spare any suspect who planned the crime.

Arsalan Malik’s Post | Source: Facebook

While those affected may find some solace in Arsalan’s promises, Arsalan’s claim that he will compensate for losses may raise questions about whether further investigation into his post-theft finances and business activities is warranted.

Additionally, providing such assurances may inadvertently distract from holding criminals accountable. Serious questions have been raised regarding the security of cryptocurrency traders in Pakistan, as well as the abuse of power by law enforcement officials.

The increasing use of cryptocurrencies in the region exposes traders to such crimes due to the lack of government control and education on the security of digital assets. According to observers, this case could serve as a wake-up call for more robust legal measures and a comprehensive review of Pakistan’s legal framework’s protections for digital assets.