Pakistani Trader Kidnapped, Forced to Hand Over $340,000 in Crypto

A Pakistani cryptocurrency trader, Mohammed Arsalan, was kidnapped in a scheme that involved local law enforcement officers and released after paying his captors $340,000 in crypto.

Investigation into the case led to seven arrests so far, according to a recent report by local English-language news outlet Dawn. Per the report, a suspected policeman is still at large and an officer of the Pakistani Counter-Terrorism Department was among the arrested.

The kidnappers reportedly forced the 30-year-old trader to pay $340,000 from his Binance account balance. After multiple contacts with the kidnappers pretending to be looking to buy U.S. dollars from the victim, five men in civilian clothes forcibly abducted the trader after gagging him in a police vehicle on Dec. 25.

The news follows November reports that a Ukrainian man was coerced into transferring 250,000 worth of stablecoin USDT after a group of criminals got hold of him. Also in November, police started investigating the high-profile abduction of Dean Skurka, CEO of Toronto-based crypto firm WonderFi Technologies, who was abducted and released after the payment of a $720,000 ransom.

Jeremiah O’Connor, chief technology officer and co-founder at crypto cybersecurity firm Trugard, told Decrypt that the news “underscores a troubling, though not unprecedented, trend of kidnapping and extortion targeting individuals for their digital assets.” Byron Boston, former Dallas police officer and CEO of crypto firm Crypto Track, agreed and notedthat “cryptocurrency-related kidnappings are increasingly common.”

O’Connor’s recommendations include minimizing public exposure, using multi-signature wallets and time-locked transactions, and practicing general situational awareness.

“The rise in crypto-related extortion and kidnappings calls for stronger international collaboration among law enforcement agencies, improved regulatory frameworks, and enhanced education on operational security for those engaged in the crypto space,” he added.

The people involved in the crime were habitual offenders who had previously committed similar crimes, according to the local report. An inspector reassured reporters that the law enforcement officers connected to the kidnapping would see no leniency.

Boston noted that “the involvement of corrupt law enforcement officials in kidnappings further complicates investigations.” He explained that “criminals with access to sensitive information or investigative methods can undermine efforts to trace and recover stolen funds.”

Arsalan expressed his anger in a Dec. 31 Facebook post. He wrote that he is “ashamed to be a citizen of this country.” He ended the message by saying: “Don’t bother me by calling or messaging me. I am very depressed, mentally dead.”

Edited by Stacy Elliott.