Two men with ties to the blockchain and crypto investment world are at the center of a high-profile legal battle in New York City, accused of orchestrating a dramatic kidnapping and assault to steal Bitcoin from an Italian tourist. The case, unfolding in Manhattan’s SoHo district, has sent ripples through the fintech and crypto communities, raising questions about security, trust, and the risks associated with digital assets 1 2 3.
What Happened?
According to prosecutors, John Woeltz, 37, and William Duplessie, 32—both known for their involvement in blockchain startups and crypto-mining—allegedly lured the victim to a luxury townhouse in SoHo under threats to his family. Once inside, the situation escalated: the victim claims he was held captive for 17 days, during which he was beaten, tortured with electrical wires, forced to smoke crack cocaine, and even dangled from a five-story staircase. The attackers’ goal, prosecutors say, was to force the victim to hand over his Bitcoin password 1 2 3.
The ordeal ended when the victim, bloodied and shoeless, managed to escape as his captors went to retrieve his computer. He flagged down a police officer on the street, leading to the arrest of Woeltz and Duplessie. A subsequent search of the townhouse revealed cocaine, a saw, chicken wire, body armor, night vision goggles, ammunition, and Polaroid photos showing the victim with a gun pointed at his head 2 3.
Defense and Courtroom Drama
Both defendants have pleaded not guilty. Their lawyers argue that the accuser was seen moving freely around New York during the alleged captivity, presenting videos purportedly showing him laughing, using drugs, and engaging in group activities. The defense claims these materials undermine the prosecution’s narrative of prolonged captivity and torture 4 1.
Despite these arguments, the judge has ordered both men held without bail, citing concerns about flight risk and the severity of the charges. Prosecutors have also indicated that this may not be the first time the suspects have been involved in similar incidents, with two other potential victims under investigation 4 1.
Broader Implications for Crypto Security
This case highlights the unique risks faced by individuals in the crypto space, where digital assets can be targeted in both virtual and physical attacks. The involvement of high-profile blockchain investors and the extreme measures allegedly used to obtain private keys underscore the need for robust personal and digital security practices.
Additionally, the investigation has expanded to include two NYPD detectives who worked security at the townhouse, now on modified leave pending further inquiry. There is no current evidence that the officers were aware of the alleged criminal activity 1.
Key Takeaways for the Crypto Community
• Physical security is as important as digital security: High-value crypto holders should be aware of the risks beyond online threats.
• Legal and reputational risks: The case serves as a reminder that the crypto industry, while innovative, is not immune to criminal activity and legal scrutiny.
• Ongoing investigations: Authorities are looking into other possible victims and the role of security personnel, suggesting the story may continue to develop.
