Nikolas Sargeant
A Kentucky cryptocurrency investor is confronting serious felony charges following allegations of kidnapping and torturing an Italian visitor for nearly three weeks inside a luxury Manhattan townhouse in an elaborate Bitcoin extortion scheme.
John Woeltz, 37, was arrested Friday morning after his 28-year-old victim escaped captivity and alerted a traffic officer in NoLIta. The victim had traveled to New York on May 6 expecting a routine business meeting but instead endured prolonged violence and intimidation at an eight-bedroom townhouse Woeltz rented for $30,000 monthly.
Prosecutors allege Woeltz and an unidentified accomplice immediately confiscated the victim's passport and electronic devices upon his arrival. The attackers then demanded access to his Bitcoin wallet password, launching a campaign of escalating violence when he refused compliance.
The torture methods included binding the victim, severe beatings, electrical shocks using wires, and death threats with firearms. In one particularly disturbing incident, the perpetrators allegedly suspended the man over a stairwell, warning of fatal consequences for continued resistance. The threats eventually expanded to include harm against his family members.
On Friday, fearing imminent death, the victim agreed to retrieve his password from a laptop in another room. When Woeltz momentarily turned away, the man seized his opportunity and fled toward a nearby traffic agent who immediately summoned assistance. Fifth Precinct officers quickly arrived, apprehending Woeltz while the victim received medical treatment at Bellevue Hospital, where he remains in stable condition.
Disturbing Evidence Uncovered in Luxury Townhouse Search
Police investigators discovered extensive evidence supporting the torture allegations during their townhouse search. Officers recovered Polaroid photographs documenting the victim's bound and assaulted condition, along with a firearm, cocaine, and various suspicious items including chicken wire, a saw, body armor, ammunition, and night vision goggles.
Two butlers employed at the residence cooperated with police investigations. Authorities also arrested Beatrice Folchi on kidnapping and unlawful imprisonment charges, though the Manhattan District Attorney's Office declined immediate prosecution pending further investigation.
Woeltz appeared for arraignment Saturday in Manhattan criminal court, facing charges including kidnapping, assault, unlawful imprisonment, and criminal weapon possession. The judge ordered him held without bail and required passport surrender, citing prosecutors' concerns about flight risk given his access to private aircraft and helicopters.
Growing Trend of Physical Crypto Attacks Emerges
This incident exemplifies an alarming increase in violent attacks targeting cryptocurrency holders and industry executives. Digital wallets secured by single passwords present attractive targets for criminals seeking alternatives to sophisticated cyber defense systems.
Earlier this month, armed assailants in central Paris attempted abducting a prominent crypto executive's daughter and her two-year-old child in broad daylight. As Bitcoin and digital asset values have surged, criminal incentives for bypassing technological security through physical violence have correspondingly intensified, creating new security challenges for cryptocurrency holders worldwide.
