Crypto Investor Charged With Kidnapping, Torture Over Bitcoin Dispute

John Woeltz, a 37-year-old U.S. cryptocurrency investor, has been charged with multiple serious offenses, including kidnapping, assault, and illegal gun possession. The charges stem from an incident in which Woeltz allegedly held a 28-year-old Italian man captive in a luxury townhouse in Manhattan for several weeks. The victim was lured to the townhouse under the pretense of retrieving Bitcoin that he had previously been forced to send to Woeltz.

The ordeal began on May 6 when the victim arrived in New York City and was taken to Woeltz's residence. According to prosecutors, the victim was subjected to severe torture for weeks, including being shocked with electric wires, having his leg cut with a saw, and being forced to smoke crack cocaine. The victim managed to escape on Friday, flagging down a traffic agent who then called 911. Evidence recovered from the scene included chicken wire, ballistic helmets, body armor, night vision goggles, and Polaroids depicting the victim in distressing situations.

During his captivity, the victim was threatened with death if he did not hand over his Bitcoin password. At one point, Woeltz and an accomplice allegedly hung the victim over the ledge of the stairs, further intensifying the threat. The victim's electronics and passport were taken and hidden, and he was threatened with harm to his family. The victim eventually agreed to give up his Bitcoin password out of fear for his life, which allowed him to escape when Woeltz left to retrieve the laptop.

Woeltz, who is considered a flight risk, was ordered to remain in custody and surrender his passport. A second individual, 24-year-old Beatrice Folchi, was also taken into custody but was later released pending further investigation. The Manhattan District Attorney's Office declined to prosecute Folchi at this time.

The community in the vicinity of the crime scene was shocked by the allegations. Witnesses described a chaotic scene with police and SWAT teams responding to the incident. The residence, which Woeltz rents for a significant monthly fee, was the site of the alleged torture and kidnapping. The victim's harrowing experience highlights the dark side of the cryptocurrency world, where financial disputes can escalate into violent crimes. The case underscores the need for vigilance and legal protection in the rapidly evolving landscape of digital currencies.

This incident is part of a broader pattern of physical assaults and kidnappings within the cryptocurrency industry. In recent months, there have been several high-profile cases involving cryptocurrency investors and their families being targeted. In one instance, the daughter and grandson of Pierre Noizat, CEO of a crypto platform, were targeted in an attempted kidnapping. In another case, a crypto millionaire’s father was abducted and had a finger severed before being rescued. Additionally, the co-founder of a hardware wallet maker and his wife were kidnapped from their home and later rescued by authorities, with a paid ransom being seized.

These incidents raise serious concerns about the safety and security of individuals involved in the cryptocurrency industry. The high stakes and anonymity associated with digital currencies can make them a target for criminal activities. The case of John Woeltz serves as a stark reminder of the potential dangers and the need for robust legal frameworks to protect investors and their assets. As the cryptocurrency landscape continues to evolve, it is crucial for law enforcement and regulatory bodies to stay vigilant and adapt to the changing threats posed by this emerging technology.