In a chilling case that has sent shockwaves across Pakistan, a cryptocurrency trader was kidnapped in Karachi on December 25, 2024, and forced to transfer $340,000 worth of digital assets as ransom. Among the seven suspects arrested were individuals with criminal records and a serving officer from the Counter-Terrorism Department (CTD). Authorities are still pursuing an additional officer allegedly implicated in the crime.

Mohammed Arsalan, a 30-year-old crypto trader, recounted being abducted from Manghopir, Karachi, by a group of armed men in an unmarked police vehicle. After being gagged and detained near the Saddar Federal Investigation Agency office, he was forced to unlock his Binance account and transfer his life savings to several wallets controlled by the kidnappers. Hours later, they released him near the Quaid-e-Azam mausoleum.

Arsalan took to Facebook to share screenshots of his Binance withdrawal history, which included substantial transactions in USDT and other cryptocurrencies. He claimed that $277,000 of the stolen amount was routed through decentralized exchanges before being moved off-chain to Binance. While these screenshots could serve as crucial evidence, investigators must authenticate them to corroborate Arsalan’s account fully. Law enforcement officials confirmed that efforts to trace the stolen funds and identify the individuals behind the receiving wallets were underway, although the anonymity offered by decentralized finance systems poses significant challenges.

The suspects, identified as habitual offenders by the Anti-Violence Crime Cell (AVCC), were apprehended in a series of raids led by SSP Aneel Haider Minhas. However, the exact timeline of their arrests and the evidence connecting them to the crime remain undisclosed. Public skepticism has grown, fueled by the involvement of rogue officers in the case. Inspector General of Police Ghulam Nabi Memon labeled the incident as a singular instance of misconduct, but critics have called for a more transparent investigation to restore public confidence in the police force.

Arsalan’s narrative raises unanswered questions about the lead-up to his abduction. He alleged that weeks before the incident, a man named Hamid persistently sought to purchase US dollars from him, eventually arranging a meeting involving Arsalan’s friend Zohaib. The meeting escalated into an abduction orchestrated by individuals Arsalan reportedly found suspicious. The rationale behind his decision to engage with these individuals remains unclear, as does the level of verification conducted before the meeting.

The incident has ignited a broader discussion about the security of cryptocurrency traders in Pakistan. Observers note that the growing adoption of digital assets in the region, coupled with limited regulatory oversight and public awareness, has left traders vulnerable to crimes like extortion and kidnapping. Arsalan’s case underscores the need for stronger legislative measures and education on digital asset security to protect traders and investors.

Arsalan expressed his anguish over the ordeal, condemning accusations of fabrication and pledging to ensure justice for himself and others affected. While his assurances offer some hope, they also raise questions about his financial capacity to reimburse losses and whether further investigation into his business activities is warranted.

This high-profile incident serves as a stark reminder of the risks faced by cryptocurrency traders and the urgent need for systemic reforms to safeguard the burgeoning digital economy in Pakistan.