12 Malaysian Police Officers Arrested Over Crypto Extortion

12 Malaysian police officers have been arrested for allegedly extorting around $51,000 in crypto from eight Chinese nationals. The victims, who were in Malaysia for business discussions, reported that the officers threatened to arrest and detain them for immigration issues unless they transferred their digital assets.

Selangor police chief, Datuk Shazeli Kahar, confirmed that police had made arrests following a report. Authorities are investigating the case as a gang robbery. The situation raises concerns about possible abuse of power and highlights ongoing issues with police integrity in Malaysia.

Details of the Raid

On the evening of February 5, 2026, at around 11:10 pm, the Kajang district commercial crime unit raided a two-storey house in the gated Country Heights community. The officers targeted eight Chinese nationals, aged 25 to 45. They suspected the victims were involved in online fraud linked to a Cambodia-based group under “Op Taring.” 

Officers took phones and laptops for inspection but found no evidence of wrongdoing. However, they threatened the group with detention and asked for payment in digital currency to prevent further issues. One victim, a 31-year-old market surveyor, was forced to send about $51,033.43 worth of Tether crypto to a specific wallet after being initially asked for $102,367.24.

Investigations showed that the transfer happened under pressure in the early hours to ensure the victims’ release. The victims claimed they were legitimate business visitors with no ties to illegal activities. Identification parades of the accused have taken place as part of the ongoing investigation.

Investigation Progress

Following the police report on February 6, authorities quickly detained 12 officers for questioning. They were, however, released on bail while the investigation continues. The accused include an assistant superintendent, an inspector, a sergeant, six corporals, two lance corporals, and four federal Commercial Crime Investigation officers.

The case revolves around a gang robbery, as specified in Section 395 of the Penal Code, and presents several serious issues. Meanwhile, no charges have been brought forward so far, and there has been no update on the recovery of the stolen funds. The attorney representing the victims has expressed concern about the investigation’s sluggish pace. 

They questioned why the authorities were labeling it as a gang robbery rather than extortion. The situation highlights the dangers posed when authorities misuse their power during operations aimed at tackling scams.