Eight suspects, including several policemen, have been arrested in connection with a cryptocurrency heist worth over Rs90 million. The robbery, which also involved the kidnapping of cryptocurrency trader Muhammad Arsalan Malik, took place on the night of December 25, 2024, in Karachi’s Manghopir area. Local media reports have revealed the depth of the crime, including the involvement of law enforcement officers in the illegal transfer of digital assets.
The ordeal began when Malik, a well-known cryptocurrency trader, was abducted from his residence by a group of men, including police officers, in plain clothes and a police mobile without a number plate. The kidnappers held Malik captive and, during the course of his abduction, transferred approximately $340,000 (worth around Rs80 million) in cryptocurrency (USDT) from his online accounts. The assailants later released Malik near the Quaid-e-Azam mausoleum, leaving him shaken but unharmed.
As part of the ongoing investigation, authorities have made notable recoveries, including Rs12 million in cash, a Mercedes Benz valued at Rs7 million, and prize bonds worth Rs900,000. Despite these successes, the authorities are focused on recovering the remaining stolen assets and apprehending other suspects believed to be involved in the heist. The arrested suspects are currently under a five-day remand as investigations continue to unfold.
The arrest of the suspects has sent shockwaves through Karachi’s law enforcement community, particularly with the involvement of police officers in the crime. Ali Raza, one of the prime suspects, was initially arrested but was later released, under suspicious circumstances, prompting speculation of a “barter system” between the police and the criminals. According to local newspaper reports, Raza’s share of the stolen cryptocurrency, amounting to Rs800,000, remains unrecovered. The authorities have yet to fully clarify the reasons behind his release, but this case has raised serious concerns over the integrity of the police involved.
Reports also suggest that the investigation has led to the detention of over 14 individuals; however, many were reportedly released after paying bribes, complicating the efforts to bring all those responsible to justice. SSP Anil Haider of the Anti-Violent Crime Cell (AVCC), which is handling the case, confirmed that the investigation is making progress. He also denied any formal complaints of police misconduct, stating that any such allegations would be dealt with once the focus shifted to recovering the remaining stolen assets and arresting all involved culprits.
Meanwhile, DIG Asif Ijaz Shaikh of the Counter-Terrorism Department (CTD) took disciplinary action by suspending three officers linked to the kidnapping. Sub-Inspector Raja Muhammad Basheer, along with constables Muhammad Umar and Sahibzada Ali Raza, were suspended for their involvement in the crime. Their case was subsequently transferred to the AVCC for further investigation, signaling a firm stance by the police leadership against corruption within its ranks.
The case has brought to light the rising issues surrounding cryptocurrency crime in Pakistan, with digital asset thefts becoming a growing concern. It also raises questions about the role of law enforcement in facilitating or turning a blind eye to such criminal activities. Experts have pointed out that the involvement of police officers in these activities erodes public trust in the justice system and underscores the need for stronger oversight and accountability mechanisms within law enforcement agencies.
The incident highlights the vulnerability of cryptocurrency traders in Pakistan and the lack of adequate security measures for safeguarding their digital assets. The swift recovery of part of the stolen money, along with the arrest of key suspects, is a step toward justice, but many are calling for more comprehensive measures to protect against such crimes in the future.
As the investigation progresses, authorities are working tirelessly to locate the remaining suspects, including Constable Ali Raza, who remains at large. The case serves as a reminder of the complex and evolving nature of crime in the digital age, where traditional law enforcement struggles to keep pace with new and sophisticated criminal tactics.
This heist, which combined elements of kidnapping, cryptocurrency theft, and police corruption, is now under intense scrutiny, and the investigation is expected to continue as authorities look to close the case and bring justice to all those affected.
