Crypto-linked kidnapping in NYC underscores rising threats as criminals target digital asset holders for passwords - IcoHolder.

A chilling kidnapping unfolded in Manhattan when a 28-year-old Italian man was abducted and tortured in a violent attempt to seize his Bitcoin wallet password. According to reports from the Associated Press, the victim was lured under false pretenses and subjected to brutal abuse at the hands of his captor, 37-year-old crypto investor John Woeltz.

The ordeal began on May 6, when the victim was tricked into visiting Woeltz’s Soho townhouse, rented for $30,000 a month. There, he was held hostage, beaten, drugged, and threatened with death, including being dangled over a stairwell to force compliance. Woeltz, who reportedly owns a vast property in Kentucky and has ties to blockchain security and crypto hedge funds, allegedly orchestrated the crime with at least one other accomplice still at large.

After a harrowing escape aided by a passing traffic officer, the victim was hospitalized in stable condition. Woeltz was promptly arrested and charged with kidnapping, assault, unlawful imprisonment, and illegal possession of a firearm. He is being held without bail and will face further court appearances in the coming week.

This disturbing case is part of a growing pattern of violent crimes linked to the crypto world. Prosecutors in New York recently charged two men running a fraudulent crypto recovery service, underscoring the increasing dangers facing digital asset holders. Security experts warn that 2025 has seen a surge in crypto-related violence, with over two dozen reported kidnappings and home invasions aimed at forcibly extracting passwords from victims. The rise in these violent attacks highlights the urgent need for stronger safeguards in the rapidly evolving cryptocurrency landscape.