Key Points:
- 37-year-old John Woeltz arrested for allegedly kidnapping and torturing an Italian man for his Bitcoin password
- Victim held captive for nearly three weeks in a $30,000/month Manhattan townhouse
- Victim managed to escape after being beaten, shocked, and threatened with death
- Police found disturbing evidence including Polaroid photos of the bound victim and various weapons
- Case highlights growing trend of violent physical attacks targeting cryptocurrency holders
Violent Crypto Extortion Plot Uncovered in Manhattan
A Kentucky-born crypto investor is facing multiple felony charges following the alleged kidnapping and torture of an Italian visitor in what authorities describe as a violent Bitcoin extortion scheme. John Woeltz, 37, was arrested Friday morning after his alleged victim managed a daring escape from a luxury Manhattan townhouse where he had reportedly been held against his will for nearly three weeks.
The 28-year-old Italian national flagged down a traffic officer in the NoLIta neighborhood after fleeing the eight-bedroom townhouse that Woeltz had been renting for $30,000 per month, according to court documents.
Victim’s Harrowing Three-Week Ordeal
What began as what the victim believed would be a routine meeting after flying to New York on May 6 quickly descended into a prolonged nightmare of violence and intimidation, prosecutors say.
According to authorities, Woeltz and at least one unidentified male accomplice:
- Stole the victim’s passport and electronic devices
- Demanded the password to his Bitcoin wallet
- Bound and beat the victim when he refused to comply
- Shocked him with electrical wires
- Threatened him with a firearm
- Suspended him over a stairwell while threatening his life
- Later escalated to threats against the victim’s family
The ordeal came to an end when the victim, fearing for his life, claimed he needed to retrieve his password from a laptop in another room. When Woeltz momentarily turned his back, the victim seized the opportunity to escape, running toward a nearby traffic agent who immediately called for assistance.
Officers from the Fifth Precinct responded to the scene and took Woeltz into custody. The victim was transported to Bellevue Hospital and is reported to be in stable condition.
Disturbing Evidence Uncovered
A search of the townhouse by law enforcement revealed substantial evidence supporting the victim’s account:
- Polaroid photographs showing the victim bound and assaulted
- A firearm
- Cocaine
- Various implements allegedly used for torture, including chicken wire and a saw
- Body armor
- Ammunition
- Night vision goggles
Two butlers employed at the residence agreed to cooperate with police investigators.
Legal Proceedings and Additional Arrests
Woeltz was arraigned on Saturday in Manhattan criminal court on multiple charges including:
- Kidnapping
- Assault
- Unlawful imprisonment
- Criminal possession of a weapon
The judge ordered Woeltz held without bail and required the surrender of his passport. Prosecutors highlighted that Woeltz has access to both a private jet and a helicopter, raising significant flight risk concerns.
Another individual, Beatrice Folchi, was also arrested and charged with kidnapping and unlawful imprisonment. However, the Manhattan District Attorney’s Office declined to prosecute her at this time, citing the need for further investigation.
Growing Trend of Violent Crypto Attacks
This incident reflects an alarming pattern of violent physical attacks targeting cryptocurrency holders and industry executives. Digital wallets, often secured by a single password and potentially containing assets worth millions, present an attractive target for criminals willing to use physical force rather than technical means to gain access.
Earlier this month, armed men in central Paris attempted to abduct the daughter of a prominent crypto executive and her two-year-old child in broad daylight. Security experts note that as cryptocurrency values have soared in recent years, criminals are increasingly bypassing sophisticated cyber defenses in favor of direct physical threats to obtain access to digital assets.
Industry observers recommend that high-net-worth cryptocurrency investors take enhanced physical security precautions and consider multi-signature wallet configurations that require approval from multiple parties for transactions, making single-point extortion attempts less effective.