NEW YORK — A cryptocurrency investor has been arrested in connection with a shocking crypto kidnapping case in Manhattan, where authorities say a man was imprisoned, tortured, and coerced into surrendering access to his Bitcoin holdings during a weeks-long ordeal in an upscale New York City townhouse.
John Woeltz, 37, was taken into custody Friday night after the 28-year-old victim managed to escape and flagged down a traffic officer on the street, according to the Manhattan District Attorney’s Office. Woeltz was arraigned Saturday on charges of kidnapping, assault, unlawful imprisonment, and criminal possession of a firearm. A judge ordered him held without bail.
Woeltz’s attorney, Wayne Gosnell, declined to comment on the allegations.
The disturbing events unfolded inside an eight-bedroom townhouse in Manhattan, where prosecutors say the victim, who had recently arrived in New York from Italy, was held against his will beginning May 6. The two men’s relationship, if any, remains unclear.
During the arraignment, prosecutor Michael Mattson told the judge that multiple individuals were involved in the plot to steal the victim’s Bitcoin wallet, including one unapprehended male accomplice.
Authorities say the victim was bound, drugged, beaten with a firearm, and repeatedly shocked with electrical wires. He was even dangled over a staircase ledge and told he would be killed if he didn’t give up his Bitcoin password.
The victim ultimately gave in, telling his captors the password was stored on his laptop in another room. When one suspect turned his back, the man saw his chance, fled the residence, and ran into the street to seek help.
Investigators later executed a search warrant on the luxury residence and found a stash of incriminating evidence: cocaine, a saw, chicken wire, night vision goggles, ammunition, and body armor, along with Polaroid photographs of the victim with a gun pointed to his head.
Mattson said the victim was taken to the hospital, where his injuries were consistent with accounts of being restrained and physically assaulted.
The D.A.’s office expressed concern over Woeltz’s flight risk, citing that he owns both a private jet and a helicopter. The judge ordered him to surrender his passport, with a court appearance scheduled for next week.
The case represents a disturbing intersection of cryptocurrency and violent crime, with prosecutors alleging a calculated plan to extract Bitcoin credentials through coercion and physical torture. It also raises broader concerns about the security risks associated with digital assets, especially for high-net-worth investors.
The victim’s name has not been publicly released. Law enforcement continues to pursue additional suspects involved in the case.
