On a chilling Christmas night in 2024, seven suspects were apprehended in Karachi, Pakistan, on charges of kidnapping and extortion. The suspects, including an officer from the Counter-Terrorism Department, allegedly kidnapped a cryptocurrency trader, Mohammed Arsalan, and forced him to transfer his entire life savings, amounting to $340,000, from his Binance account to their wallets.
Inspector General of Police Ghulam Nabi Memon confirmed the arrest of one CTD officer and mentioned that efforts were ongoing to capture another police officer implicated in the crime. The suspects, 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 (AVCC). However, the timeline of their arrests and the evidence against each suspect remain unclear at this point.
During his ordeal, Arsalan was held captive in a neighborhood in the northwestern part of Karachi. After his release, he took to Facebook to share harrowing details of his experience. Still, some of his claims remain unverified by independent sources, including the exact amount he had transferred and the sequence of events leading up to his abduction.
Experts have expressed concern over the challenges of tracking funds through decentralized finance systems, where anonymity is a key feature. To fully substantiate Arsalan’s account, investigators need to authenticate his Binance withdrawal history, which he posted on Facebook, showing multiple forced transfers in various cryptocurrencies totaling over $340,000.
In the weeks leading up to his abduction, Arsalan claimed that a man named Hamid persistently approached him to purchase US dollars. Despite Arsalan’s refusal, Hamid 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 the rest of the suspects joined them. It remains unclear why Arsalan agreed to meet with these individuals or whether any measures were taken to verify their identities.
Arsalan was abducted later that night by a group of armed men in an unmarked police vehicle. They detained him near the Saddar FIA office, where they forced him to unlock his Binance account and transfer his money to multiple wallets. Arsalan was released near a local landmark, Quaid-e-Azam Mausoleum, at 4 a.m., suggesting a degree of planning and technical expertise among the kidnappers.
IGP Memon referred to the incident as an isolated case of individual misconduct and emphasized that the police force does not tolerate such unlawful activities. However, his statement has sparked skepticism given the alleged involvement of rogue officers in the crime. Critics are calling for a more transparent internal investigation to restore public confidence in law enforcement.
Following the incident, Arsalan expressed his devastation over the loss of his savings and condemned those accusing him of fabricating the incident. He also clarified that no investors or relatives were implicated in the case and vowed to repay any losses incurred by others.
The incident has raised serious questions about the security of cryptocurrency traders in Pakistan and the potential for misuse of authority by law enforcement officers. This case serves as a stark reminder of the risks associated with the increasing use of cryptocurrencies and the urgent need for robust legislative measures and a thorough review of Pakistan’s legal framework for the protection of digital assets.