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

Ransom victim recounts harrowing ordeal as kidnappers force transfer of life savings. On Dec. 25, 2024, in Karachi, Pakistan, seven suspects—including an officer from the Counter-Terrorism Department—were taken into custody on suspicion of participating in the kidnapping of a cryptocurrency trader and demanding a ransom of $340,000. While confirming that one CTD officer had been arrested, Inspector General of Police Ghulam Nabi Memon stated that attempts were still underway to capture another police officer implicated in the crime. The victim, 30-year-old Mohammed Arsalan, was kidnapped from Manghopir, a well-known neighborhood in the northwestern part of Karachi. According to Arsalan, the abductors forced him to transfer $340,000 from his Binance account to several wallets they controlled before releasing him hours later near the Quaid-e-Azam mausoleum. You might also like: Pakistan proposes new crypto framework to central bank rules Arsalan later shared additional details on Facebook, but independent sources largely unverified 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 through decentralized exchanges before being moved off-chain to Binance . Arsalan Malik’s Post | Source: Facebook While Arsalan assured the public that law enforcement was actively working to trace the transactions and identify the individuals behind the wallets, experts have pointed out the challenges of tracking funds through decentralized finance systems, where anonymity is often a core feature. Arsalan also posted a screenshot of his Binance withdrawal history on Facebook , showing multiple forced transfers in various cryptocurrencies, including significant amounts in USDT and other tokens, totaling over $340,000. Although screenshots can provide useful evidence, investigators must authenticate this data to fully corroborate his account. The suspects, identified as Mohammed Rizwan Shah, Tariq Hasan Shah alias Amir, Muzamil Raza, Umer Jilani, Umer Irshad, Noman Riffat, and Haris alias Ashar, were apprehended by the Anti-Violence Crime Cell. According to a statement by AVCC officials, the team, led by SSP Aneel Haider Minhas, conducted multiple operations throughout Karachi to capture the suspects. However, details about the exact timeline of their arrests and the evidence linking each suspect to the crime remain unclear. The AVCC described the arrested individuals as habitual offenders who had been jailed for similar crimes in the past, but public records or court documents to substantiate this characterization were not immediately available. Arsalan’s account of the lead-up to his abduction also raises some unanswered questions. Weeks before the incident, he claimed that a man named Hamid approached him to purchase US dollars. Despite Arsalan’s refusal, Hamid persisted and eventually set up a meeting with Arsalan’s friend Zohaib. On Dec. 24, 2024, three men, including Muzamil and Hammad, visited Arsalan’s office and invited him to a restaurant where other suspects joined them. It remains unclear why Arsalan agreed to meet with individuals he was reportedly suspicious of or whether any measures were taken to verify their identities. Such details could be critical in understanding whether this was a premeditated 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 the 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 near a local point of attraction, known as Quaid-e-Azam Mausoleum at 4 a.m. The choice of location for his release and the precise steps taken to reset his phone suggest a level of planning and technological know-how among the kidnappers. In an interview with Dawn , IGP Memon called it a singular instance of misconduct by individual officers and stressed that the police force does not tolerate unlawful activities. However, his remarks have been met with skepticism, given the significant role that rogue officers allegedly played in the crime. Critics argue that a more transparent internal investigation is required to restore public confidence in law enforcement. Arsalan, in a Facebook post , expressed his devastation over the loss of his hard-earned money. He condemned those accusing him of fabricating the incident, stating that the DIG was personally supervising the investigation. He also clarified that no investors or relatives were implicated in the case and vowed to repay any losses incurred by others. Arsalan promised not to spare any of the culprits responsible for orchestrating the crime. Arsalan Malik’s Post | Source: Facebook Although individuals impacted may find some solace in Arsalan’s promises, his assertion that he will reimburse losses may raise questions about his post-theft financial status and whether more investigation into his business activities is necessary. Additionally, making such assurances could unintentionally divert attention from holding the offenders accountable. Serious questions have been raised by the occurrence regarding the security of cryptocurrency traders in Pakistan as well as the abuse of authority by law authorities. The region’s increasing use of cryptocurrencies exposes traders to these types of crimes due to a lack of governmental control and education on the security of digital assets. According to observers, this case might act as a wake-up call for more robust legislative measures and a thorough examination of Pakistan’s legal framework’s protections for digital assets. You might also like: Pakistan moves to legalize crypto as government signals shift in financial policy

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