Bitcoin News Today: Two men granted $1M bail each in crypto kidnapping case; court prohibits Bitcoin payment.

Two men accused of torturing and detaining a 28-year-old Italian cryptocurrency trader in a Manhattan townhouse to access his digital assets were released on $1 million bail each after a July 23 court hearing. John Woeltz, 37, and William Duplessie, 33, both pleaded not guilty to charges including kidnapping, assault, and coercion. The bail, issued by New York Supreme Criminal Court Judge Gregory Carro, explicitly prohibits the use of Bitcoin to satisfy the payment requirement [1][5].

The case centers on a May 2025 extortion scheme in which the victim was allegedly abducted upon arriving in New York under the pretense of a cryptocurrency-related opportunity. Prosecutors allege the victim was held hostage for weeks, subjected to repeated torture—including beatings, electric shocks, pistol-whipping, and threats to harm his family—to force him to reveal his Bitcoin credentials. Evidence recovered from the townhouse included firearms, body armor, surveillance tools, and drugs, suggesting the attack was premeditated [1][5]. The victim reportedly escaped in late May by convincing a suspect to allow him access to a laptop, where he claimed the password was stored. He fled unattended and flagged down a traffic officer, later being hospitalized with injuries consistent with his account [1].

Woeltz, a Kentucky-based cryptocurrency investor, was arrested at the townhouse, while Duplessie, a Miami resident, surrendered days later. Court documents describe the defendants as “crypto bros” whose methods mirrored military-style interrogation techniques, including waterboarding and sleep deprivation [3][5]. Defense attorneys argued the case was a case of “hazing,” claiming the victim sought to participate in a “lifestyle of shenanigans” during a 17-day period, a defense dismissed as implausible by prosecutors [5].

The judge imposed additional restrictions, including electronic ankle monitors, passport surrender, and security inspections every 72 hours [5]. The defendants’ next court appearance is scheduled for October 15. The ruling has sparked debate over the intersection of cryptocurrency and crime, with experts noting the growing risks for high-net-worth holders in the crypto space. The anonymity and unregulated nature of digital assets, combined with the absence of standardized legal frameworks, create vulnerabilities exploited by criminals seeking access to private keys or passwords [1][5].

The case has also highlighted a broader trend of increasing security concerns in the crypto industry. Following the incident, firms like Infinite Risks International reported a surge in demand for bodyguards and long-term protection contracts for crypto executives and investors, particularly in regions like France where similar kidnappings have occurred [1]. The victim’s identity remains undisclosed, but his status as a millionaire underscores the financial incentives driving such crimes.

Prosecutors emphasized the severity of the alleged offenses, while defense teams highlighted the defendants’ lack of prior criminal records. The bail decision reflects a judicial balancing act between due process and public safety, with the court citing the need for accountability while restricting access to digital assets to prevent further illicit activity [5].

The outcome underscores the challenges law enforcement faces in addressing crimes that span traditional and digital realms. As the trial proceeds, it may set a precedent for how courts handle cryptocurrency-related offenses, particularly in cases involving coercion and digital asset theft.

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] [Crypto kidnapping case: Suspects granted bail in New York](https://www.ctvnews.ca/world/article/suspects-in-new-york-crypto-kidnapping-and-torture-case-granted-bail/)

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

[4] [NYC crypto bros granted $1M bail each](https://www.fox5ny.com/news/crypto-bros-bitcoin-torture-nyc-italian)

[5] [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/)