TLDR
- A crypto investor in NYC was charged with kidnapping and torturing a man for weeks to obtain his Bitcoin password
- The 28-year-old Italian victim was held in a Manhattan townhouse, beaten, electrocuted, and drugged during captivity
- The victim escaped on Friday after pretending to retrieve his password from another room and flagged down police
- John Woeltz, 37, was arrested and ordered held without bail on charges including kidnapping and assault
- Physical crypto attacks are increasing in 2025, with experts tracking at least 26 incidents including kidnappings and home invasions
A cryptocurrency investor was arrested in New York City on charges of kidnapping and torturing a man for weeks in an attempt to steal his Bitcoin. The case highlights the growing trend of violent crimes targeting digital asset holders.
John Woeltz, 37, was taken into custody Friday night after his alleged victim escaped from a luxury Manhattan townhouse. The 28-year-old Italian national had been held captive since early May, according to prosecutors.
The victim arrived in New York from Italy in early May and was abducted on May 6. He was held in an eight-bedroom townhouse where he faced weeks of torture designed to force him to reveal his Bitcoin password.
Prosecutors say the victim was bound by his wrists and subjected to various forms of abuse. His captors drugged him, used electric wires to shock him, and hit him in the head with a firearm.
In one incident, the attackers carried him to the top of a flight of stairs and dangled him over a ledge. They threatened to kill him if he refused to share his Bitcoin password.
The victim eventually escaped on Friday by pretending to agree to give up his password. He told his captors the password was stored on his laptop in another room, and when Woeltz turned his back, the victim ran from the apartment.
Growing Pattern of Violence
After escaping, the victim flagged down a traffic officer on the street for help. He was taken to a hospital and treated for injuries consistent with being bound and assaulted.
Woeltz was arraigned Saturday on charges of kidnapping, assault, unlawful imprisonment, and criminal possession of a firearm. He was ordered held without bail.
Prosecutors said Woeltz was not acting alone in the scheme. Court records reference an “unapprehended male” co-conspirator who remains at large.
A search of the townhouse revealed extensive evidence of the crime. Police found cocaine, a saw, chicken wire, body armor, and night vision goggles.
Investigators also discovered ammunition and polaroid photos of the victim with a gun pointed to his head. Prosecutors noted that Woeltz has significant means to flee, including access to a private jet and helicopter.
Increasing Crypto-Related Violence
Security experts have documented a sharp rise in physical attacks targeting cryptocurrency holders in 2025. Jameson Lopp, CTO of security firm Casa, has tracked at least 26 physical crypto-related attacks this year.
These incidents range from kidnappings to home invasions, all designed to bypass digital security through physical coercion. The attacks are commonly known as “wrench attacks” in the cryptocurrency community.
Earlier this month, an American tourist lost $123,000 in crypto after being targeted by a fake Uber driver in London. The victim was drugged and his digital wallets were emptied during the incident.
In January, Ledger co-founder David Balland had his finger severed during a ransom attempt in France. Several other attacks in France have also featured victims losing fingers as part of the coercion tactics.
Last week, the daughter of a French crypto executive was targeted in an attempted kidnapping in Paris. Four masked individuals tried to force the woman and her child into a van before the attempt was thwarted.
Woeltz is scheduled to return to Manhattan criminal court next week for further proceedings in the case.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
