Karachi police have registered a case following allegations by a cryptocurrency trader who claims he was abducted by armed suspects and forced to transfer approximately $500,000 worth of digital assets from his crypto wallets. The incident, which reportedly took place in the early hours of Tuesday morning, has raised concerns about the growing risks faced by individuals involved in digital asset trading and cryptocurrency related activities. According to the complaint filed at Gulistan e Jauhar Police Station, the victim, Jan Sher Khan, also known as JS Rao, was allegedly targeted while travelling home on his motorcycle and was subsequently held against his will for several hours while his financial accounts were accessed and emptied.
Authorities have launched an investigation into the case and are reviewing surveillance footage collected from the area where the incident occurred. CCTV footage reportedly shows a vehicle colliding with a motorcycle in what investigators believe may have been a deliberate attempt to stop the victim. The footage is said to capture the motorcyclist attempting to flee before being chased, overpowered, and forced into a waiting vehicle by multiple suspects. Police officials are examining additional recordings from nearby locations to identify those involved and trace the movements of the vehicle used in the alleged abduction. The registration of the case marks the beginning of a broader inquiry into the circumstances surrounding the reported theft and the methods used by the suspects to gain access to the victim’s digital assets.
Speaking about the incident, Rao said he works as a freelancer and had been dropped off near Kamran Chowrangi by a friend on Tuesday night, where his motorcycle was parked. According to his account, he was riding home at approximately 2:30am when a car struck his motorcycle, causing him to fall. He alleged that four armed men then forced him into their vehicle and transported him to an undisclosed location. During the period of captivity, Rao claimed the suspects accessed all of his online accounts, copied data, obtained passwords, and used his fingerprints to authorise transfers from multiple cryptocurrency wallets. He further alleged that the individuals behind the operation contacted members of his cryptocurrency community, requesting funds to be sent to his accounts before redirecting those funds into accounts under their own control. According to Rao, these activities continued throughout the night and into the morning as the suspects systematically gained access to his digital holdings and associated accounts.
Rao stated that after several hours, the abductors placed him back in the vehicle, drove around various locations, and eventually left him in the Bin Qasim area. He said he later removed the blindfold covering his eyes and asked local residents where he was before arranging transportation home through Bykea. Following the incident, he began recovering access to his online accounts and was able to regain control of all but one account. He estimates that nearly $500,000 was withdrawn during the ordeal. Rao also noted that part of the stolen funds included prize money he had recently received after winning a South Asia competition organised by Binance. Investigators are now working to determine the flow of funds, identify the accounts that received the transfers, and establish whether the suspects were part of a larger organised network targeting cryptocurrency holders. The case highlights the increasing intersection between physical crime and digital asset theft, where attackers seek not only access to devices and credentials but also direct control over biometric verification methods used to secure financial accounts.
Follow the SPIN IDG WhatsApp Channel for updates across the Smart Pakistan Insights Network covering all of Pakistan’s technology ecosystem.
