In a striking turn of events, Malaysian authorities have detained twelve police officers amid allegations of extorting approximately 200,000 ringgit (about $51,000) in cryptocurrency from a group of Chinese nationals during a raid earlier this month. The arrests were publicly disclosed on February 19, 2026, following an internal investigation into a controversial late-night operation conducted in Kajang.
The incident transpired on February 5, 2026, when officers executed a raid on a rented bungalow located within a gated community in Country Heights, Kajang. Reports indicate that eight Chinese nationals, who were in Malaysia for business discussions, claimed that the officers seized their electronic devices and passports during the operation. Notably, despite finding no evidence of any criminal activity, the officers allegedly issued threats of arrest and immigration detention unless the group complied with a demand for 400,000 ringgit.
Victims of the alleged extortion managed to negotiate the demanded sum down to approximately 200,000 ringgit, which was reportedly paid in Tether (USDT) and transferred to a cryptocurrency wallet provided by the police officers. Before departing the site, the officers allegedly instructed the group to vacate the property within two days or face further repercussions.
The arrested officers, whose ages range from 24 to 47, have service records varying from two to 27 years. Among those detained are one Assistant Superintendent of Police (ASP), one Inspector, one Sergeant, six Corporals, two Lance Corporals, and one Constable. Notably, four of the arrested individuals were affiliated with the Federal Commercial Crime Investigation Department (CCID), including members of cyber tactical and digital forensic units.
Selangor Police Chief Shazeli Kahar confirmed that the investigation is being conducted under Sections 395 and 397 of Malaysia”s Penal Code, which pertain to gang robbery and robbery with weapons. Although their remand period was extended, all twelve officers have been released on police bail as investigations continue.
In an effort to trace the digital transaction linked to the USDT transfer, authorities have seized multiple mobile phones, SIM cards, and related documentation. If convicted, the officers could potentially face up to 20 years in prison, in addition to caning, under Malaysian law.
