Police probe first major Chinese kidnapping gang in Colombo

Another fellow Chinese businessman abducted for cryptocurrency theft,$60,000 robbed  

By Darshana Sanjeewa Balasuriya   

Police have launched an investigation into what is being described as Sri Lanka’s first major cryptocurrency-related kidnapping and theft involving USDT (Tether), allegedly carried out by a group of Chinese nationals.   

According to police, a Chinese businessman operating a shop named ‘Hua Hui’ on R.A. De Mel Mawatha, Kollupitiya, was abducted by at least six Chinese men around 9:00 p.m. on Friday (August 22). He was allegedly confined in a building for nearly 24 hours while the suspects transferred approximately $60,000 (around Rs. 180 million) worth of cryptocurrency from his USDT wallet.   

The victim had later been abandoned roadside on Saturday. Subsequently,he had got himself admitted to a private hospital in Narahenpita. The Kollupitiya Police launched an investigation after a complaint was lodged on Sunday evening.   

No arrests had been made by the time this edition went to press.   

A senior police officer said that this is the largest known theft involving USDT cryptocurrency in the country and the first reported incident where a Chinese gang abducted a fellow Chinese national in Sri Lanka over digital assets.   

Police have previously investigated several financial fraud cases involving foreign nationals, including Chinese individuals, operating from within Sri Lanka. Since October 2024, over 200 Chinese nationals have been arrested across various regions for alleged involvement in online financial scams. Authorities seized large numbers of mobile phones, laptops, and other digital equipment during these operations. Many of the suspects were also found to be overstaying their visas.  

Investigators believe Sri Lanka has become a base for such operations due to its advanced telecommunications infrastructure, strategic location, friendly ties with China, and a general lack of public awareness around cyber fraud. These factors have reportedly made the country attractive to transnational electronic fraud syndicates targeting Chinese victims at home and abroad.   

In response to the growing threat, Sri Lanka’s Criminal Investigation Department (CID) has sought assistance from China’s Special Criminal Investigation Unit to support ongoing investigations.