Bitcoin News Today: Manhattan Judge Grants $1 Million Bail in Crypto Theft, Torture Case with No Crypto Payments Allowed

A Manhattan judge has granted $1 million bail to two men accused of orchestrating a violent crypto theft scheme involving the alleged kidnapping and torture of an Italian national. John Woeltz and William Duplessie, arrested in May, were ordered released under strict conditions—including passport surrender, electronic ankle monitoring, and home confinement—after Judge Gregory Carro questioned the prosecution’s evidence [1]. The ruling, made during a late July 2025 hearing, cited inconsistencies between the Manhattan District Attorney’s allegations and the defense’s video evidence, which suggested the victim’s account lacked credibility [2].

The case centers on claims that the defendants lured the unidentified Italian cryptocurrency trader to a SoHo townhouse under threats to his family. Prosecutors described a harrowing sequence of events, including allegations that the men set the victim on fire, used a chainsaw to inflict wounds, and pistol-whipped him while attempting to extract access to his digital assets. Assistant District Attorney Sarah Kahn presented graphic details and a photo of the victim engulfed in flames, though defense attorneys argued the timeline of the alleged captivity was illogical [3]. Footage from a surveillance camera showed the victim appearing to smoke a cigarette on a street 36 hours prior to leaving the townhouse, casting doubt on claims of prolonged captivity [4].

The bail decision reflects the court’s balancing act between the severity of the charges—kidnapping, assault, and coercion—and the defendants’ lack of criminal history. Judge Carro emphasized that the prosecution had not demonstrated a flight risk, a critical factor in bail determinations. The judge also prohibited cryptocurrency transactions as a payment method for the bail, a restriction explicitly noted in court records [5]. This condition aligns with broader regulatory efforts to curtail crypto-linked crimes, as digital currencies’ anonymity often complicates tracing illicit transactions [6].

Legal analysts interpret the ruling as a signal of judicial caution toward crypto-related offenses. The prohibition on crypto payments is seen as a deliberate measure to prevent money laundering, given the challenges of tracking digital assets. The case also highlights vulnerabilities in cryptocurrency’s security model, with victims increasingly targeted for private key access. While the exact value of the stolen digital assets remains undisclosed, the incident adds to a global trend of rising crypto-related crimes. Chainalysis reported $2.17 billion stolen from crypto services in 2025 alone, exceeding the $1.87 billion lost in all of 2024 [7].

The defendants’ not-guilty pleas and the defense’s emphasis on procedural inconsistencies have sparked debate about the evidentiary standards for prosecuting violent crimes tied to digital assets. Prosecutors referenced a Kentucky property linked to Woeltz—dubbed the “crypto king of Kentucky”—where investigators reportedly found writings about kidnapping and torturing individuals for crypto theft. However, the defense argued that the prosecution’s narrative lacked corroboration and contained logical gaps [8].

The ruling underscores the complexities of adjudicating crimes that intersect physical violence and digital finance. While $1 million bail is exceptionally high for non-violent offenses, the court justified it based on the gravity of the alleged crimes. The defendants’ clean records, however, were highlighted by defense attorneys as grounds for leniency [9]. The decision may influence future cases involving crypto theft, as courts navigate the legal and technical challenges of regulating digital assets.

Sources:

[1] [Suspects in New York City crypto kidnapping, torture case](https://abcnews.go.com/US/suspects-new-york-city-crypto-kidnapping-torture-case/story?id=124014736)

[2] [Supreme Court Judge Gregory Carro’s ruling](https://www.nydailynews.com/2025/07/23/suspects-nyc-crypto-kidnapping-torture-plot-granted-million-bond/)

[3] [Court filings detailing the victim’s injuries](https://protos.com/bitcoin-torture-suspects-granted-bail-in-manhattan-court/)

[4] [Defense arguments for leniency](https://www.aol.com/nyc-crypto-bros-accused-torturing-204711569.html)

[5] [Bail conditions prohibiting cryptocurrency payments](https://www.fox5ny.com/news/crypto-bros-bitcoin-torture-nyc-italian)

[6] [Legal analysis of crypto bail restrictions](https://www.cryptopolitan.com/suspects-in-ny-crypto-kidnapping-out-on-bail/)

[7] [Global regulatory trends in cryptocurrency crime](https://www.instagram.com/p/DMe7pyGuYf5/)

[8] [Prosecution’s flight risk assessment](https://www.aol.com/nyc-crypto-bros-granted-1m-005044410.html)

[9] [Public debate on bail equity](https://www.newsbreak.com/new-york-post-509648/4128667443497-accused-nyc-crypto-bro-kidnappers-granted-1m-bail-but-judge-warns-they-can-t-pay-in-bitcoin)