A Pakistani cryptocurrency trader, Mohammed Arsalan, was kidnapped in a scheme involving local law enforcement officials and released after paying his captors $340,000 in crypto.
Investigation of the case led to seven arrests so far, according to a recent report by local English-language news agency Dawn. According to the report, a police suspect is still at large and an official from Pakistan’s counter-terrorism department was among those arrested.
The kidnappers allegedly forced the 30-year-old trader to pay $340,000 from his Binance account balance. After several contacts with the kidnappers who pretended to buy US dollars from the victim, five men in civilian clothes forcibly took the trader after gagging him in a police vehicle on December 25.
The news follows November reports that a Ukrainian man was forced to transfer 250,000 stablecoin USDT after a group of criminals got hold of him. Also in November, police began investigating the high-profile abduction of Dean Skurka, CEO of Toronto-based crypto firm WonderFi Technologies. who was taken away and released after paying a ransom of $720,000.
Jeremiah O’Connor, chief technology officer and co-founder at crypto cybersecurity firm Trugard, said Decrypt that the news “highlights a disturbing, but 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, noting that “cryptocurrency kidnappings are increasingly common.”
O’Connor’s recommendations include minimizing public exposure, using wallets with multiple signatures and time-locked transactions, and practicing general situational awareness.
“The increase in crypto-related extortion and kidnapping calls for stronger international cooperation between law enforcement agencies, improved regulations and improved training 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 assured reporters that the officers linked 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 one December 31 Facebook post. He wrote that he was “ashamed to be a citizen of this country.” He ended the message by saying: “Don’t disturb me by calling or texting me. I am very depressed, mentally dead.”
Edited by Stacy Elliott.
