Authorities in New York have charged John Woeltz, a 37-year-old cryptocurrency investor, with kidnapping and torturing an Italian man in a chilling attempt to steal access to his Bitcoin holdings. This disturbing case adds to a growing global pattern of criminals targeting digital currency investors for ransom.

Victim Escapes After Weeks of Abuse in Manhattan Luxury Townhouse

The victim, a 28-year-old Italian national, arrived in the United States on May 6. Shortly after his arrival, Woeltz and two accomplices allegedly abducted him and confined him inside a luxurious five-story townhouse in Manhattan’s upscale SoHo neighborhood. The attackers reportedly used the high-end rental, which costs $30,000 per month, as the site of prolonged abuse aimed at forcing the victim to surrender his cryptocurrency passwords.

On Friday, the victim escaped the townhouse and alerted police, who responded immediately. Inside the property, officers discovered Polaroid photographs that appeared to document the torture. Investigators also found the victim’s stolen passport and electronic devices, items the attackers had allegedly seized to block his escape and gain access to his digital assets.

Prosecutors Reveal Shocking Details of Crypto Ransom Torture

According to prosecutors, the victim refused to provide his Bitcoin login credentials, which prompted Woeltz and his co-conspirators to escalate the violence. They allegedly beat him, shocked him with electricity, and cut his leg with a saw. At one point, they reportedly held a gun to his head and suspended him from the townhouse rooftop, using physical and psychological threats to break him down.

Even more disturbingly, the attackers allegedly forced the victim to smoke crack cocaine and threatened to kill his family if he continued to resist. These details, reported by the New York Times, paint a harrowing picture of the violence some criminals are willing to commit in pursuit of cryptocurrency.

Woeltz Pleads Not Guilty and Remains in Custody Without Bail

Following his arrest on Friday, Woeltz appeared in Manhattan criminal court on Saturday, where he faced four felony charges, including kidnapping for ransom. He immediately secured legal representation and refused to speak to investigators. During the arraignment, he pleaded not guilty to all charges.

Judge Eric Schumacher ordered Woeltz to remain in custody without bail, citing the severity of the allegations and the potential risk he poses to the victim and the public. Meanwhile, authorities also detained a 24-year-old woman in connection with the case. However, by Saturday, she was seen walking free, and court records did not list any formal charges against her.

Investigators have not yet determined the exact relationship between Woeltz and the victim, but they suspect the kidnapping was carefully planned and that Woeltz may have targeted the victim after learning of his cryptocurrency holdings.

Rising Global Threat: Criminals Target Crypto Investors

This case is not an isolated event. Around the world, criminals are increasingly targeting individuals with significant crypto holdings, using abduction, coercion, and violence to extract digital wealth. These crimes reflect a growing awareness among criminals that crypto transactions are irreversible, untraceable, and often conducted without centralized oversight.

On May 18, Amsterdam-based private security firm Infinite Risks International revealed a surge in requests for personal security among cryptocurrency entrepreneurs, particularly in France. The company cited multiple kidnapping and ransom cases that have alarmed high-net-worth crypto investors.

In response, French authorities have ramped up efforts to protect their crypto sector. They now offer priority police assistance, personalized security briefings, and family protection plans for prominent figures in the crypto space. These enhanced measures aim to deter future attacks and ensure rapid response in emergency situations.

Ledger Co-Founder Kidnapped in France, Rescued by Police

One of the most high-profile incidents occurred in January 2025, when David Balland, co-founder of crypto hardware wallet maker Ledger, was abducted in France. He endured several days in captivity before French police launched a successful rescue operation, highlighting the risks even the most well-known crypto professionals face.

Similarly, in May 2024, criminals in a Paris suburb kidnapped the father of a crypto entrepreneur. In that case, law enforcement conducted a coordinated raid and safely freed the hostage, underlining how criminal networks now target family members to pressure crypto owners into complying.

Crypto Educator Abducted in Uganda and Forced to Transfer $500,000

These attacks are not limited to Europe. On May 17, Festo Ivaibi, founder of Uganda-based cryptocurrency education platform Mitroplus Labs, was abducted near his home on Bunamwaya Road in Kampala. Armed men, reportedly wearing military uniforms and posing as soldiers from the Uganda People’s Defence Forces (UPDF), kidnapped Ivaibi at gunpoint.

Once in custody, the attackers coerced him into unlocking his crypto wallets and transferring $500,000 in digital assets. According to a statement by Mitroplus’s Afro Token Project, the criminals also forced the unauthorized sale of Afro Token, a meme coin linked to the company, inflicting additional financial losses under extreme duress.

Why Crypto Investors Must Treat Security as a Priority

These incidents demonstrate that crypto-related crime has entered a new, more dangerous phase. With digital assets offering anonymity and instant liquidity, criminals now view crypto holders as high-value targets. As such, investors, entrepreneurs, and educators must adopt serious personal and digital security protocols.

Experts recommend several key safety measures:

• Maintain complete privacy regarding crypto holdings, especially on social media

• Store digital assets in secure hardware wallets with advanced protections

• Use multi-signature wallets and cold storage solutions

• Refrain from discussing investment portfolios in public or unsecured settings

• Hire professional security services when traveling or attending public events

• Engage with law enforcement early if threats emerge

By taking these steps, crypto investors can significantly reduce their exposure to targeted attacks.

Conclusion: As Crypto Wealth Grows, So Does the Risk

The violent kidnapping in Manhattan, along with similar attacks in France and Uganda, underscores a grim reality: crypto wealth now attracts real-world violence. With digital assets rising in value and accessibility, criminal actors are adapting their strategies, moving from phishing scams and online fraud to physical coercion and abduction.

While law enforcement agencies worldwide have begun to respond, the decentralized nature of crypto means that much of the responsibility for protection rests on individuals. Therefore, staying safe in this new financial frontier requires not only securing digital assets—but also safeguarding personal well-being.

Ultimately, as cryptocurrency continues to revolutionize finance, it also demands a parallel evolution in personal and physical security awareness. The digital future may be bright, but without vigilance, it can also be dangerously vulnerable.