On December 25, 2024, in Karachi, Pakistan, a 30-year-old cryptocurrency trader, Mohammed Arsalan, was abducted and forced to transfer $340,000 from his Binance account to wallets controlled by his kidnappers. The incident, involving seven suspects, including a Counter-Terrorism Department (CTD) officer, has raised concerns about the safety of crypto traders and the misuse of authority by law enforcement.
Arsalan was kidnapped from Manghopir, a neighborhood in Karachi, by armed men in an unmarked police vehicle. He was gagged and detained near the Saddar FIA office, where he was coerced into unlocking his Binance account and transferring funds to multiple wallets. After resetting his phone, the abductors released him near the Quaid-e-Azam Mausoleum at 4 a.m.
Arsalan shared evidence on Facebook, including screenshots of Binance withdrawal history showing forced transfers totaling over $340,000 in cryptocurrencies like $USDT, $PNUT ,$ORCA ,$PEPE .Investigators are working to trace these transactions, but the anonymity of decentralized finance systems poses challenges.
Seven suspects, identified as habitual offenders, were apprehended by the Anti-Violence Crime Cell (AVCC). They include Mohammed Rizwan Shah, Tariq Hasan Shah alias Amir, Muzamil Raza, Umer Jilani, Umer Irshad, Noman Riffat, and Haris alias Ashar. Efforts are ongoing to capture another implicated officer.
This incident has sparked debate about the security of cryptocurrency traders in Pakistan and the lack of regulatory measures to protect digital assets. Critics demand greater transparency from law enforcement and a thorough investigation into the role of rogue officers.
The case highlights the urgent need for Pakistan to strengthen its legal framework for digital assets, ensuring traders’ safety and addressing law enforcement corruption.
