Pakistani Cryptocurrency Trader Kidnapped, Forced to Transfer $340,000

Muhammad Arsalan, 30, was kidnapped in the Manghopir area of ​​northwestern Karachi. The criminals held him for several hours and forced him to transfer $340,000 from his Binance account to several wallets they controlled. After the money was transferred, he was released near the mausoleum of Quaid-Azam.

Arsalan later shared details of the incident on social media, stating that $277,000 was transferred through decentralized exchanges to a wallet, and then the funds were moved to Binance. However, sources who verified his claims could not confirm the exact amount or sequence of events. Despite this, Arsalan assured that law enforcement agencies were tracking the transactions.

The men were identified as Muhammad Rizwan Shah, Tariq Hasan Shah (aka Amir), Muzammil Raza, Umer Jilani, Umer Irshad, Noman Riffat and Haris (aka Ashar). The men were arrested by the Karachi Anti-Violent Crime Branch, which had conducted several operations to nab the suspects. All of them had criminal records and had previously served sentences for similar crimes.

Arsalan also recounted the events leading up to his kidnapping. A few weeks before the incident, a man named Hamid had tried to meet him in order to buy dollars. Arsalan refused, but Hamid soon arranged a meeting with a friend of Arsalan's. On the evening of December 24, 2024, three men, including Muzammil and Hammad, visited Arsalan’s office and invited him to dinner, where they were joined by other suspects.

Arsalan was kidnapped in a ramshackle police car that night, held at the FIA ​​office, and forced to unlock his Binance account. After his phone was dropped, he was released near the mausoleum at 4 a.m.

The case has put a spotlight on the safety of crypto traders in Pakistan, where the use of digital currencies is rapidly growing and regulation remains underdeveloped. Rights activists and crypto experts say stronger safeguards and better laws are needed to protect digital assets.