Manhattan Crypto Investor Accused of Kidnapping, Torture in Attempt to Steal Bitcoin Wallet Passwords
A crypto investor in Manhattan is facing serious criminal charges after allegedly kidnapping and torturing an Italian man in a violent attempt to steal access to his cryptocurrency wallet.
John Woeltz, 37, was arraigned on Saturday in Manhattan Criminal Court, a day after his arrest on charges including kidnapping for ransom. According to police reports, Woeltz is accused of holding a 28-year-old Italian man captive inside a luxury Soho townhouse — reportedly rented for $30,000 per month — for several weeks, subjecting him to repeated abuse while demanding access to his Bitcoin holdings.
The victim, who arrived in New York on May 6, told authorities he was abducted by Woeltz and an accomplice shortly after arriving in the U.S. His passport and electronics were allegedly confiscated, and when he refused to surrender his crypto credentials, the situation turned violent.
According to the victim’s statement to police, he endured a horrific ordeal: repeated beatings, electric shocks, threats with a firearm, and at one point, being dangled from a high floor of the townhouse. He also claimed Woeltz used a saw to cut his leg and forced him to smoke crack cocaine under threat of further violence. The victim said threats were also made against his family.
Photos found at the scene — including Polaroids — appear to corroborate his claims, suggesting prolonged abuse. Authorities say the victim managed to escape on Friday and contacted police, leading to Woeltz’s immediate arrest.
Woeltz pleaded not guilty to four felony charges, including kidnapping, and is being held without bail. He is due back in court on May 28.
A 24-year-old woman was also detained in connection with the case but was seen free the following day. As of Sunday, no charges had been filed against her.
Law enforcement has not released further details about the relationship between the suspect and the victim, nor has it confirmed whether any cryptocurrency was ultimately stolen.
This case highlights a troubling trend in the digital asset space: rising physical security threats. As crypto wealth has grown more visible, so too have threats against its holders. Last week, Amsterdam-based security firm Infinite Risks International reported a sharp increase in demand for bodyguards and long-term protection from high-profile crypto investors.
In France, where several high-profile crypto kidnappings have occurred — including the January 2025 abduction of Ledger co-founder David Balland — officials have begun offering increased protections for crypto entrepreneurs and their families.
In one such case last year, French authorities rescued the father of a crypto entrepreneur from a ransom scheme in a Paris suburb. That incident, and others like it, have raised alarms about the rising risk profile of wealthy crypto holders in an increasingly decentralized — and often opaque — financial landscape.
As crypto continues to blur the lines between finance and personal safety, the Manhattan case serves as a chilling reminder that digital assets, while intangible, can provoke very real-world consequences. As law enforcement scrambles to keep up with this new frontier, both investors and governments may need to rethink what security looks like in the age of crypto.