12 Malaysian Police Officers Arrested Over $51,000 Crypto Extortion Allegation

Malaysian authorities have arrested 12 police officers over allegations that they extorted approximately 200,000 ringgit (about $51,000) in cryptocurrency from a group of Chinese nationals during a raid earlier this month.

The arrests were officially announced on February 19, 2026, following an internal investigation into a late-night operation conducted in Kajang.

What Happened During the Raid

According to reports, the incident took place on February 5, 2026, when officers raided a rented bungalow in a gated community in Country Heights, Kajang.

Eight Chinese nationals who were in Malaysia for business discussions claimed that officers confiscated their electronic devices and passports during the operation. Despite reportedly finding no evidence of criminal wrongdoing, the officers allegedly threatened the group with arrest and immigration detention unless they paid RM400,000.

The victims are said to have negotiated the amount down to approximately RM200,000. The payment was reportedly made in Tether (USDT) and transferred to a cryptocurrency wallet provided by the suspects.

Before leaving the premises, the officers allegedly instructed the group to vacate the property within two days or face further consequences.

Who Was Arrested

The 12 suspects range in age from 24 to 47 and have service records spanning between two and 27 years.

Those detained include:

• One Assistant Superintendent of Police (ASP)
• One Inspector
• One Sergeant
• Six Corporals
• Two Lance Corporals
• One Constable

Four of the arrested officers were reportedly attached to the Federal Commercial Crime Investigation Department (CCID), including members of cyber tactical and digital forensic units.

Legal Proceedings and Potential Penalties

Selangor Police Chief Shazeli Kahar confirmed that the case is being investigated under Sections 395 and 397 of Malaysia’s Penal Code, which cover gang robbery and robbery with weapons.

After their remand period was extended, all 12 officers were released on police bail while investigations continue.

Authorities have seized multiple mobile phones, SIM cards, and related documents in an effort to trace the digital transaction trail linked to the USDT transfer.

If convicted, the officers could face up to 20 years in prison as well as caning under Malaysian law.

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