On December 25, 2024, in Karachi, Pakistan, a cryptocurrency trader named Arsalan was abducted and coerced into transferring $340,000 from his digital accounts to those of his captors.
The incident began when five individuals in civilian clothing arrived at Arsalan's residence in Saima Arabian Villas, Manghopir, using an unmarked police vehicle. They forcibly took him to the Saddar Passport Office, where they blindfolded him and compelled him to transfer the funds from his cryptocurrency account to theirs. After resetting his phone to erase evidence, they also took Rs8,000 in cash from his pocket before abandoning him near Mazar-e-Quaid around 4:00 AM.
Arsalan identified some of the perpetrators as Muzammil, Hammad, Asher, and Zaman, noting that they had previously approached him to purchase U.S. dollars—a request he had declined, stating he did not deal in foreign currency. Surveillance footage from the residential society corroborated his account, showing a police van entering the premises during the time of the crime.
The Anti-Violent Crime Cell (AVCC) launched an investigation, uncovering evidence linking law enforcement officials to the crime. This included the recovery of the police vehicle used in the kidnapping and a route map tracking the suspects' movements. On January 3, 2025, the AVCC announced the arrest of seven suspects, among them a policeman. The arrested individuals were identified as Haris Ashar, Muhammad Rizwan Shah, Tariq Hassan Shah alias Aamir, Muzammil Raza, Umar Jilani, Umar, and Noman Rifat. Sources indicated that personnel from the Counter Terrorism Department (CTD) were also involved, with the police vehicle used in the abduction reportedly belonging to the CTD.
Inspector General of Police Ghulam Nabi Memon emphasized that this was an act by individuals, not representative of the CTD as a whole. He stated that the police force does not tolerate unlawful activities and that any officers found involved would face legal action and potential dismissal from service.
This incident has raised significant concerns about the safety of cryptocurrency traders in Pakistan and the potential misuse of authority by law enforcement officials. The case underscores the need for robust regulatory measures and protections for individuals involved in digital asset transactions.