In an unsettling twist to the rising trend of crypto-fueled crime, a New York-based cryptocurrency investor has been arrested for allegedly orchestrating the kidnapping and prolonged torture of a man in a brutal attempt to steal access to his Bitcoin holdings.
John Woeltz, 37, was taken into custody Friday night by New York authorities after his alleged victim—an Italian national—managed to escape captivity from a luxury townhouse in Manhattan. Prosecutors allege the man had been confined, beaten, drugged, and electrocuted for weeks in a sustained effort to force him to reveal the password to his Bitcoin wallet.
The victim, a 28-year-old man who had arrived in New York earlier in May, was abducted on May 6. His captors reportedly subjected him to horrifying conditions in a townhouse that masked the grim reality behind its upscale facade. Authorities say his eventual escape came through a clever ruse: pretending to retrieve his crypto password from another room, giving him just enough time to flee and alert the police.
According to statements from the district attorney’s office, Woeltz was not acting alone. Prosecutors believe there was at least one accomplice, described only as an “unapprehended male.” A search of the property yielded a disturbing collection of evidence, including cocaine, a saw, rolls of chicken wire, night vision goggles, and Polaroid photographs showing the victim with a firearm pointed at his head.
Woeltz now faces a series of serious charges, including kidnapping, assault, unlawful imprisonment, and weapons possession. A judge has ordered that he be held without bail pending further investigation.
A Growing Pattern of Crypto-Targeted Violence
This case isn’t an isolated incident. It underscores a rapidly escalating pattern of what experts call “wrench attacks”—violent attempts to force victims to surrender private keys or wallet access under physical threat.
While digital wallets are designed with strong cryptographic protection, the human element remains a weak link. Criminals have increasingly turned to physical coercion, bypassing technical security through intimidation or outright violence.
Security professionals, including Jameson Lopp, CTO of crypto custody firm Casa, have raised the alarm about the rise in physical attacks against crypto holders in 2025. According to Lopp’s data, there have already been at least 26 documented incidents this year involving home invasions, kidnappings, or other forms of violent extortion linked to cryptocurrencies.
Just weeks ago, the daughter of a prominent French crypto executive and her child were nearly abducted in Paris, only narrowly escaping their assailants. Earlier in May, an American tourist visiting London was drugged by a fake Uber driver who stole over $123,000 in Bitcoin and XRP from his wallets. In one of the most gruesome cases to date, Ledger co-founder David Balland had his finger severed during a ransom attempt in January.
The Human Cost of Digital Wealth
As crypto gains mainstream acceptance and astronomical valuations, it’s becoming clear that the risks extend far beyond online scams or phishing attacks. This incident in New York reflects a more sinister reality: when vast wealth is stored behind a string of digits, some are willing to go to terrifying lengths to steal it.
For now, Woeltz remains behind bars, and authorities are continuing their search for his accomplice. The crypto community, meanwhile, is left grappling with a chilling reminder—while digital assets may be decentralized and secure, the people who own them remain deeply vulnerable in the physical world.
Security experts continue to urge crypto holders to keep low profiles, use multisig wallets, and take their physical safety as seriously as their digital defenses.
