Crypto Investor Charged With Kidnapping, Torturing Man in NYC Over Bitcoin Password

Crypto Investor Arrested for Kidnapping and Torturing Man to Access Bitcoin Wallet

In a shocking turn of events, a crypto investor has been arrested and charged with kidnapping and torturing another man in a violent attempt to gain access to his Bitcoin wallet, prosecutors reported on Saturday.

John Woeltz, 37, was taken into custody on Friday night after his alleged victim managed to escape from a luxury Manhattan townhouse where he had been held captive for weeks. According to the prosecutors, the victim was bound, beaten, drugged, and electrocuted as part of a prolonged effort to force him to reveal his password.

The 28-year-old Italian national, who arrived in New York in early May, was abducted on May 6. He eventually managed to escape on Friday after pretending to retrieve his password from another room.

Woeltz was arraigned on Saturday and charged with kidnapping, assault, unlawful imprisonment, and weapons possession. He was ordered to be held without bail. Prosecutors stated that Woeltz was not acting alone, citing an "unapprehended male" co-conspirator. A search of the property revealed a disturbing array of items, including cocaine, a saw, chicken wire, night vision goggles, and Polaroids of the victim with a gun to his head.

Increasing Threats to Crypto Participants

This incident highlights a growing trend of violence targeting cryptocurrency users. As digital assets continue to rise in value and prominence, criminals are increasingly turning to physical attacks to bypass encryption and gain access to people's wallets.

Security experts have noted an alarming increase in so-called "wrench attacks," where physical violence is used to forcibly extract cryptocurrency credentials from victims. In one recent case, a woman and her child, both relatives of a leading figure in France's crypto industry, were targeted in an attempted kidnapping in Paris.

Jameson Lopp, CTO of security firm Casa, has tracked at least 26 physical crypto-related attacks this year alone, ranging from kidnappings to home invasions. Other incidents include the severing of a Ledger co-founder's finger during a ransom attempt and the drugging of an American tourist by a fake Uber driver, who then emptied his crypto wallets.

As the crypto industry continues to grow, securing the safety of its participants has become an increasingly pressing concern. Experts emphasize the importance of implementing robust security measures and raising awareness to mitigate the risk of such violent attacks.