Manhattan Crypto Investor Charged in Violent Bitcoin Extortion Plot

A 37-year-old crypto investor is facing multiple felony charges after allegedly kidnapping and torturing a man inside a luxury Manhattan townhouse for nearly three weeks in a failed attempt to steal his Bitcoin.

John Woeltz, originally from Kentucky, was arrested Friday morning after the 28-year-old victim, a visitor from Italy, managed to escape and flag down a traffic officer in the NoLIta neighborhood.

According to prosecutors, Woeltz and at least one accomplice held the man captive in an eight-bedroom townhouse that Woeltz had been renting for $30,000 a month.

The victim had flown to New York on May 6. What he believed would be a routine meeting quickly turned into a prolonged ordeal of violence and intimidation.

People are getting kidnapped & tortured for their crypto.

Stop flaunting your wealth.

Stop bragging about what you own.

Be smart people.

John Woeltz, a 37-year-old crypto investor, and Beatrice Folchi were arrested in New York City for allegedly kidnapping and torturing an… pic.twitter.com/7ldzgQumZy

Authorities said Woeltz and an unidentified male accomplice stole the victim’s passport and electronic devices. Then, they demanded the password to his Bitcoin wallet. When the man refused, the attackers bound him and beat him. They also shocked him with wires and threatened him with a gun.

In one instance the men allegedly suspended the victim over a stairwell. They warned him that he would be killed if he didn’t comply. Later, they escalated the threats further by saying they would harm his family.

On Friday, the man, fearing for his life, agreed to retrieve his password. He told the attackers it was stored on a laptop in another room.

Then, as Woeltz turned his back, the victim seized the opportunity and fled. He ran toward a nearby traffic agent, who immediately called for help. Shortly after, officers from the Fifth Precinct arrived and took Woeltz into custody. The victim was taken to Bellevue Hospital and is reported to be in stable condition.

A search of the townhouse uncovered disturbing evidence. Officers found Polaroid photos showing the man bound and assaulted. In addition, they recovered a firearm, cocaine, and various items including chicken wire, a saw, body armor, ammunition and night vision goggles. Meanwhile, two butlers working at the residence agreed to speak with the police.

Another person, Beatrice Folchi, was also arrested and charged with kidnapping and unlawful imprisonment. The Manhattan District Attorney’s Office, however, declined to prosecute her at this time, citing the need for further investigation.

Woeltz was arraigned on Saturday in Manhattan criminal court. He was charged with kidnapping, assault, unlawful imprisonment and criminal possession of a weapon. Additionally, the judge ordered him held without bail and required him to surrender his passport. Prosecutors also noted that he has access to a private jet and a helicopter, which raised concerns about his flight risk.

The incident reflects a growing wave of violent attacks targeting cryptocurrency holders and industry executives, whose digital wallets, often secured by a single password, present an attractive target.

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. As the value of Bitcoin and other digital assets has soared in recent years, so too has the incentive for criminals to sidestep sophisticated cyber defenses and instead use physical force to gain access.

The post Manhattan Crypto Investor Charged in Violent Bitcoin Extortion Plot appeared first on Cryptonews.