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

A crypto investor has been arrested and charged with kidnapping and torturing another man in a violent bid to obtain access to his Bitcoin wallet, prosecutors said Saturday, according to a Saturday report by the Associated Press.

John Woeltz, 37, was taken into custody Friday night after his alleged victim escaped a luxury Manhattan townhouse where he had been held captive for weeks. According to prosecutors, the man was bound, beaten, drugged, and electrocuted as part of a prolonged attempt to force him to give up his password.

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

Woeltz was arraigned Saturday on charges of kidnapping, assault, unlawful imprisonment, and weapons possession, and was ordered to be held without bail.

Prosecutors said Woeltz was not acting alone, citing an “unapprehended male” co-conspirator. A search of the property revealed cocaine, a saw, chicken wire, night vision goggles and Polaroids of the victim with a gun to his head. 

Increasing threats to crypto participants

As digital assets grow in value and profile, criminals are increasingly turning to violence to bypass encryption and obtain access to people’s wallets through brute force. 

The incident highlights a disturbing trend in so-called “wrench attacks,” physical assaults designed to forcibly extract cryptocurrency credentials from victims. 

Security experts have noted an uptick in such incidents in 2025. 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.

Among them, the daughter of a French crypto executive was targeted alongside her child in an attempted abduction last week.

Also, earlier this month, an American tourist was drugged by a fake Uber driver who emptied $123,000 from his crypto wallets. 

In January, Ledger co-founder David Balland had his finger severed during a ransom attempt. Several other attacks in France also featured the victim losing a finger.

Edited by Sebastian Sinclair