Pakistani Crypto Trader Kidnapped for $340K
In a shocking incident, a Karachi-based cryptocurrency trader, Mohammed Arsalan, was kidnapped on December 25 and forced to transfer $340,000 in digital assets. Seven suspects, including a Counter-Terrorism Department (CTD) officer, have been arrested. The case points to the risks traders face due to inadequate regulations and systemic vulnerabilities within law enforcement.
How Was $340K Stolen?
Arsalan’s ordeal started with constant calls from a man named Hamid, who wanted to buy US dollars. After refusing many times, Arsalan was convinced through a friend, Zohaib, to meet him.
On December 24, three suspects came to Arsalan’s office on the pretext of finalizing the deal. They took him to a restaurant, where other suspects also joined them.
These five men, in plainclothes, came in an unmarked police vehicle around the wee hours of December 25 and whisked away Arsalan, gagging him. They then whisked him away to a place near the FIA Saddar office.
Forced to unlock his Binance account, they transferred $340,000 in cryptocurrency into their wallets. After several hours, he was let off near the Quaid-e-Azam mausoleum.
Arrests and Investigation
A complaint filed by Arsalan led to an investigation by the AVCC. Police arrested seven suspects, including CTD officer Mohammed Rizwan Shah and others who were known to be habitual offenders.
Inspector General Ghulam Nabi Memon confirmed that more suspects are being pursued. The police said they would not tolerate such rogue officers and that the law would take its due course against them.
Implications for Law Enforcement and Crypto Security
The involvement of a CTD officer has raised very serious concerns about corruption in Pakistan’s law enforcement agencies. Many critics say this case highlights broader systemic issues that require substantial reforms to win back public confidence.
Furthermore, the absence of clear cryptocurrency regulations in Pakistan has left traders at risk of crimes such as fraud and theft. Though there are some initiatives to amend the State Bank of Pakistan Act and bring digital currencies under control, such a framework is still underway.
Plans for a digital rupee and a subsidiary to oversee digital payment systems are a step in the right direction, but without comprehensive protections, crypto investors will continue to be exposed. This case highlights the dire need for both legal and institutional safeguards in the growing crypto market of Pakistan.
