Bitcoin News Today: Bitcoin-Linked Kidnapping Suspects Granted $1M Bail as Judge Blocks Crypto Payments

Two men accused of kidnapping and torturing a cryptocurrency investor in a Manhattan townhouse to access his Bitcoin assets have been released on bail amid a case highlighting the intersection of digital finance and violent crime. John Woeltz, 37, and William Duplessie, 33, were granted $1 million bail each by New York Supreme Criminal Court Judge Gregory Carro on Wednesday. Both defendants pleaded not guilty to charges including kidnapping, assault, and coercion, with prosecutors alleging they subjected a 28-year-old Italian crypto trader to weeks of captivity, beatings, and torture to extract his BTC credentials [1].

The victim, who survived the ordeal by escaping in late May after convincing a suspect to let him use his laptop, was hospitalized with injuries consistent with his account of abuse. A search of the townhouse revealed drugs, weapons, body armor, and surveillance equipment, suggesting the attack was meticulously planned. Woeltz, a Kentucky-based crypto investor, was arrested at the scene, while Duplessie, a Miami resident, surrendered days later [2].

Judicial conditions for the defendants include electronic ankle monitors, passport surrender, and mandatory security inspections every 72 hours. The defense has argued the case was a “hazing” incident where the victim voluntarily participated in “shenanigans” for 17 days, a claim dismissed by prosecutors as implausible given the gravity of the alleged violence [3]. The judge also prohibited bail payments in Bitcoin, emphasizing concerns over the cryptocurrency’s volatility and traceability, to prevent asset liquidation or evasion of surveillance [3].

The case has sparked debate about the legal challenges posed by crypto-linked crimes. While the $1 million bail threshold reflects a balance between due process and public accountability, critics argue it may inadequately deter further crimes, especially as high-net-worth individuals increasingly store wealth in digital assets. Experts in the crypto industry have noted a surge in kidnapping and ransom threats, with firms like Infinite Risks International reporting heightened demand for bodyguard services and long-term protection for industry figures [2].

Prosecutors have indicated they will seek harsh penalties if the defendants fail to meet bail conditions, while the trial’s outcome could set precedents for addressing similar cases in jurisdictions grappling with crypto-related violence. The victim’s injuries, the duration of captivity, and the defendants’ lack of prior criminal records were central to the court’s deliberations.

The case underscores the risks of holding large crypto balances, as the anonymity of digital transactions can inadvertently incentivize predatory behavior. Advocates for victims emphasize the need for stronger legal safeguards and public awareness to mitigate threats tied to the intangible value of cryptocurrencies.

[1][2][3]

Source: [1] [Suspects in New York crypto kidnapping case granted bail] [https://www.cnn.com/2025/07/24/us/suspects-new-york-crypto-kidnapping-bail-hnk]

[2] [Men accused of waterboarding a bitcoin millionaire for his ...] [https://www.businessinsider.com/kidnappers-accused-of-waterboarding-bitcoin-millionaire-seek-bail-2025-7]

[3] [Accused NYC crypto bro kidnappers granted $1M bail] [https://nypost.com/2025/07/23/us-news/accused-nyc-crypto-bro-kidnappers-granted-1m-bail-but-judge-warns-they-cant-pay-in-bitcoin/]