A Pakistani Counter-Terrorism Department (CTD) officer is under investigation for his alleged role in the kidnapping and theft of $340,000 worth of Tether (USDT) from a crypto trader.
The incident began when crypto trader Mohammad Arsalan Malik was contacted by a man named Hamid, who repeatedly requested to buy US dollars. Malik arranged meetings with potential buyers, and two individuals sought to exchange $30,000, claiming a person named Ashar would handle the payment. After waiting at a restaurant for Ashar, a police van without a license plate arrived at 1:40 AM, carrying plainclothes officers. The officers then kidnapped Malik, took him to an undisclosed location, and forced him to transfer 340,000 USDT from his Binance account.
The kidnappers reset Malik’s phone and abandoned him near a mausoleum after stealing the funds. Investigators later recovered $220,000 in cryptocurrency, cash, a luxury car, and prize bonds. The investigation named nine suspects, including two CTD officers, with Chief Constable Ali Raza being the primary suspect. Eight suspects have been arrested, and Raza was remanded into custody for seven days by an anti-terrorism court judge.
Authorities have promised strict action against corrupt officers, with Pakistan's Inspector General of Police stating that no one will be spared, and guilty officers will face consequences.
This case follows another notable kidnapping involving the CEO of Ledger, a major crypto hardware wallet company, who was abducted, tortured, and had his finger cut off as part of a crypto ransom demand.
This incident sheds light on the growing risks associated with crypto trading, especially in regions with security challenges and corrupt law enforcement.
