Two men released on $1 million bail each for crypto investor kidnapping, torture; NYC case highlights rise in 'wrench attacks' on digital assets

Two men accused of kidnapping and torturing a Bitcoin investor in New York City were released on $1 million bail each, despite facing charges that could result in life imprisonment. The defendants, John Woeltz and William Duplessie, were granted bail by Manhattan Judge Gregory Carro following a plea of not guilty to charges including first-degree kidnapping, assault, and weapons possession. The judge cited concerns over witness reliability and conflicting accounts from both sides as key factors in his decision [1].

The case stems from an alleged May 6, 2025, incident in which the men lured a 28-year-old Italian businessman to a Manhattan SoHo residence under false pretenses. Prosecutors allege that the defendants subjected the victim to a two-week campaign of torture, including electric shocks, beatings, and threats to kill his family, to coerce him into surrendering access to his cryptocurrency assets [1]. Defense attorneys, however, have countered these claims with video evidence purporting to show the victim engaging in social activities and appearing relaxed, arguing he was not held against his will [1].

The case has drawn attention as part of a disturbing trend dubbed “wrench attacks,” a term referring to violent crimes targeting cryptocurrency holders to bypass digital security through physical coercion. Jameson Lopp, CTO of security firm Casa, has tracked over 200 such incidents since 2020, with more than 30 occurring in the first half of 2025 alone [1]. These attacks highlight vulnerabilities in cryptocurrency security practices, as perpetrators exploit the high value of digital assets through intimidation and force.

While out on bail, Woeltz and Duplessie are subject to electronic monitoring and have surrendered their passports. Prosecutors have dismissed the defense’s video evidence, noting that trauma victims often display behaviors misinterpreted as voluntary participation [1]. The case underscores the challenges in adjudicating crimes involving cryptocurrency, where digital assets and physical violence intersect.

Experts have emphasized the need for enhanced security measures to mitigate such threats. Recommendations include using multisignature wallets requiring multiple keys for transactions, maintaining decoy wallets with limited balances, and implementing duress protocols to erase devices under coercion [1]. These strategies aim to protect crypto holders from both digital and physical risks.

The bail decision has sparked debate over judicial standards in high-stakes cryptocurrency-related cases. Judge Carro’s ruling reflects the court’s reliance on procedural safeguards, such as electronic monitoring, to balance public safety with due process. However, critics argue that releasing individuals accused of severe crimes may embolden others in the crypto space.

The case also raises broader questions about the regulatory and legal frameworks governing cryptocurrency. As wrench attacks proliferate, jurisdictions must address gaps in protecting digital assets from physical threats. The incident underscores the urgent need for standardized protocols to safeguard both investors and the integrity of the crypto ecosystem.

Sources: [1] [title1] [url1] (https://decrypt.co/331567/two-men-nyc-crypto-torture-1-million-bail)