Twelve Selangor police officers suspended over alleged crypto theft from foreign national

Twelve police officers in Malaysia’s Selangor state have been relieved of active duty after a foreign national lodged a report alleging that approximately RM200,000 in cryptocurrency was unlawfully taken from them, in a case that has drawn national attention over alleged misconduct within law enforcement.

The probe, announced on March 2 in Shah Alam, centers on a report lodged on February 6 by a foreign national who claimed digital assets had been unlawfully taken. As the crypto theft case advances, officials say they are awaiting key forensic findings before determining further action.

According to Shazeli Kahar, Selangor’s top police official, the investigation remains active and incomplete. The case has drawn national attention, not only because of the financial losses involved but also due to the alleged involvement of law enforcement personnel.

Crypto theft case under active investigation

Speaking at a press conference at the Selangor Contingent Police Headquarters (IPK), Shazeli confirmed that authorities are still waiting for a digital forensics report that could clarify how the cryptocurrency was allegedly misappropriated.

“At this stage, the matter is still under investigation and has yet to be wrapped up,” — Shazeli Kahar, Selangor Police Chief.

The investigation paper has already been submitted for review, and the department is awaiting further instructions from the legal advisor to the Royal Malaysia Police (PDRM). The digital forensic analysis is expected to play a central role in determining whether criminal charges will follow in the crypto theft case.

Authorities have classified the case under Sections 395 and 397 of Malaysia’s Penal Code, provisions that address robbery-related offenses. While police have not disclosed detailed allegations about how the cryptocurrency was accessed or transferred, officials confirmed that statements are being recorded from relevant individuals as part of the ongoing inquiry.

Twelve officers relieved of duty

Earlier, Mohd Khalid Ismail, Malaysia’s Inspector-General of Police, said all personnel implicated in the crypto theft case had been relieved of active duty pending the outcome of investigations. The temporary suspension is intended to ensure procedural integrity while the probe continues.

The 12 individuals were detained after the foreign complainant reported the cryptocurrency loss on February 6. Authorities have not publicly disclosed the nationality of the complainant or the platform through which the digital assets were allegedly held.

The internal dimension of the crypto theft case has intensified public scrutiny. Allegations involving serving police personnel raise broader questions about oversight and accountability within enforcement institutions. However, officials have emphasized that no final determination has been made and that the investigation must run its course.

Shazeli reiterated that the department is following due process and coordinating with legal authorities before deciding on the next steps.

Digital forensics key to outcome

Digital evidence is expected to be decisive in the crypto theft case, particularly given the technical complexity associated with tracing cryptocurrency transactions. Blockchain-based assets often require specialized forensic analysis to establish ownership trails, wallet access, and transaction authorization.

While police have not disclosed which cryptocurrency was involved, the reported RM200,000 loss underscores the growing financial footprint of digital assets in Malaysia. As cryptocurrency adoption increases globally, law enforcement agencies are increasingly confronted with cases that require cyber expertise alongside traditional investigative methods.

The Selangor police chief confirmed that the department is awaiting guidance from the PDRM legal advisor following submission of the investigation file. This procedural step indicates that prosecutors will assess whether the evidence gathered in the crypto theft case meets the threshold for formal charges.

For now, authorities have stressed that the matter remains under active review. “At this stage, the matter is still under investigation and has yet to be wrapped up,” Shazeli repeated during the briefing, underscoring that conclusions are premature.

Separate probe involving activist

In a separate development disclosed at the same press conference, Shazeli said police will summon activist Arun Dorasamy following eight reports lodged by individuals and non-governmental organizations over a temple-related issue in Rawang.

“We are conducting an investigation, and the case has been classified as Refer Other Report (ROR), referring to the initial case involving the temple,” — Shazeli Kahar, Selangor Police Chief.

Although unrelated to the crypto theft case, the parallel announcement reflects a busy investigative docket for Selangor authorities.

As the crypto theft case proceeds, attention remains fixed on the pending forensic report and legal review. The outcome could set an important precedent for how Malaysian law enforcement addresses alleged misconduct involving digital assets, particularly when officers themselves are implicated.