Crypto trader Arsalan Malik was allegedly abducted in the early hours of December 25, 2024 by individuals in a police and a private vehicle.
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Police in Pakistan’s financial hub Karachi contacted Binance — the world’s largest cryptocurrency exchange — on Tuesday days after a crypto trader was abducted and forced to transfer $340,000.
According to a First Information Report (FIR) filed at the Manghopir Police Station on December 27, 2024, Arsalan Malik was abducted in the early hours of December 25 by individuals using two police vehicles.
The incident occurred in a housing society close to 4K Chowrangi in North Karachi. The kidnappers forced him to transfer 340,000 USDT — a stablecoin pegged to the U.S. dollar and used in cryptocurrency transactions — from his digital wallet to their accounts.
They later released him near Numaish Chowrangi after resetting his mobile phone to delete evidence.
How did it happen?
Senior Superintendent of Police (SSP) Anil Haider of the Anti-Violent Crime Cell (AVCC) stated that the investigation began after the FIR was transferred to their unit following the incident.
He said Arsalan disclosed that, about a month prior, some individuals had expressed interest in purchasing 30,000 USDT through one of his acquaintances. The prospective buyers insisted on meeting Arsalan at his office to finalize the deal.
During the meeting, the buyers requested access to Arsalan’s digital wallet to verify his funds. Shortly after, one of them made a phone call to signal to his accomplices. Moments later, a police vehicle arrived at Arsalan’s office, and he was forcibly taken away.
Arsalan identified the suspects in his FIR as Muzammil, Hammad, Asher, and Zaman. Investigators arrested Muzammil, who revealed a larger conspiracy involving the Counter-Terrorism Department (CTD) personnel and others.
Authorities subsequently arrested CTD personnel Omer, China-Pakistan Economic Corridor (CPEC) security official Haris, and private individuals Rizwan, Tariq, Omer Jilani, and Noman.
SSP Haider confirmed that senior officials are investigating the involvement of a policeman, and misuse of vehicles, including one belonging to the CTD.
Meanwhile, DSP CTD Intelligence Raja Umar Khattab was transferred and asked to report to the Central Police Office (CPO).
Victim’s plea
The AVCC has written to Binance to freeze the fraudulent transactions. So far, 35,000 USDT have been traced to an account under Haris’s name, but over 200,000 USDT remains unaccounted for.
On social media, Malik described the stolen cryptocurrency as the result of years of hard work and urged authorities to recover the full amount. His friend Faizan criticized investigators for focusing only on the partial recovery while ignoring the bulk of the stolen funds.
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