Malaysian Police Face Gang Robbery Probe Tied to Seized Digital Assets

• Twelve Malaysian police officers arrested over alleged $51,000 crypto extortion in Selangor raid.
• Complaint by Chinese national triggered gang robbery probe tied to forced digital asset transfer.
• Arrests come days after the king’s warning on corruption within police and key agencies.

Authorities in Malaysia have detained 12 police officers over allegations that they extorted cryptocurrency worth roughly 200,000 ringgit, or about US$51,000, from a group of Chinese nationals during a late-night raid in Selangor. The arrests follow a formal complaint lodged earlier this month and come amid heightened scrutiny of corruption within the country’s public institutions.

According to Selangor police chief Shazeli Kahar, the officers were taken into custody after one of the eight alleged victims filed a complaint on February 6. Local media reported that the individuals involved were between 25 and 45 years old.

The group alleged that officers entered a bungalow in Kajang district, outside Kuala Lumpur, around midnight. During the operation, phones and laptops were reportedly seized. One of the Chinese nationals was allegedly compelled to transfer digital assets to a designated cryptocurrency account.

Shazeli confirmed that the case is being investigated as a gang robbery involving a foreign national’s cryptocurrency. He did not disclose further operational details but stated that immediate action had been taken following the complaint. “The Selangor police contingent will not compromise with any officers or members who are involved in criminal activities,” he said in a statement.

Related: Interpol Declares Global Emergency Over Transnational Crypto Scam Networks

Arrests Follow Royal Warning on Corruption

The detentions were announced days after Malaysia’s King, Sultan Ibrahim Iskandar, publicly warned that corruption within key government agencies was under close watch. In a social media post earlier this week, the monarch stated that he had independent intelligence on corrupt practices across institutions, including the police, immigration authorities, customs department, and the Malaysian Anti-Corruption Commission.

The king’s remarks followed criticism of Prime Minister Anwar Ibrahim’s decision to retain Malaysian Anti-Corruption Commission Chief Commissioner Azam Baki, who is facing allegations related to illegal shareholdings. The commission has denied the claims, which were first reported by Bloomberg, and Azam has filed a defamation lawsuit against the news agency.

Since taking office in 2022, Anwar’s administration has pursued a series of investigations and charges against senior civil servants and political figures as part of a broader anti-corruption effort. The investigation into the Selangor case remains ongoing. Authorities have not indicated whether additional arrests or disciplinary measures are expected.

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