KARACHI: An anti-terrorism court on Saturday was informed that investigators had recovered digital assets of a crypto trader equivalent to $220,000 in the form of digital coins, Pakistani currency, bonds and a luxury sedan from the alleged kidnappers.

The investigating officer of the case, Makhdoom Moinuddin, brought the eight suspects — Counter Terrorism Department constables Ali Sajad and Muhammad Umer, along with Haris Ashar, Mohammed Rizwan Shah, Noman Riffat, Tariq Hasan Shah, Muzamil Raza and Umer Jilani — before the ATC in Clifton, seeking to extend their police custody as he claimed they were willing to pay the recovery amount.

At the outset of the hearing, the counsel for crypto trader, Barrister Uzair Ghouri, informed the court that out of $340,000 paid by his client to his kidnappers to earn freedom, $220,000 had been recovered in the form of digital coins USDT — a stable coin equivalent to a dollar — Pakistani currency, prize bonds and a Mercedes-Benz.

He requested the court to extend their police remand as the investigators have yet to recover the remaining USDT coins worth $120,000.

Police remand extended to recover remaining coins worth $120,000

Barrister Ghouri contended that digital assets are not declared illegal in Pakistan, and that all over the world digital currencies are used and even in some countries they are used for transaction purposes.

Meanwhile, the defence counsel opposed the request to extend physical custody of the suspects.

After hearing the prosecution and defence side, the court extended their remand in police custody for a further five days.

At the last hearing, the IO informed the court that he had recovered around Rs12 million in cash, Rs900,000 in prize bonds and a Mercedes-Benz vehicle from the suspects.

He also informed the court that complainant Arsalan Malik had identified two suspects before the judicial magistrate (West) and assigned their roles in the commission of the offence.

According to the FIR, crypto trader Arsalan Malik was abducted on Dec 25, 2024 at 1:40am in a police mobile bearing no number plate by five men in plain clothes.

They brought him near the FIA Saddar office, forcibly got opened his Binance account and transferred USD coins worth $340,000 into different digital wallets/accounts.

They reset his cell phone, handed it back to him and dropped him near the mausoleum of the Quaid-i-Azam at 4am. Later, eight suspects were booked and arrested for their alleged involvement in the kidnapping of the trader and releasing him after he transferred the ransom into their digital wallets.

Published in Dawn, January 19th, 2025