John Woeltz was arrested in New York City on Friday for allegedly kidnapping and torturing a man in an attempt to access his Bitcoin (BTC) password. Once celebrated as a rising star in the crypto world, Woeltz, known as the “crypto king of Kentucky,” now faces serious criminal charges.
Victim Escapes Torture In NYC
According to a report by Fortune, Woeltz was apprehended after the victim, 28-year-old Michael Valentino Teofrasto Carturan, managed to escape from Woeltz’s luxurious NoLIta townhouse.
The victim flagged down a traffic agent, who promptly notified the police. Carturan had reportedly been held captive for three weeks within the 17-room residence. Prosecutors allege that during his captivity, Woeltz and his accomplice, William Duplessie, subjected Carturan to severe torture.
Reports indicate that he was pistol-whipped, shocked with a taser, forced to smoke crack cocaine, and even had his leg cut with a saw. Carturan also recounted a harrowing experience of being suspended over a ledge at the top of the five-story building.
The ordeal began when Carturan, a business associate of Woeltz, visited the townhouse on May 6. It is alleged that Woeltz and Duplessie confiscated Carturan’s passport and electronic devices, threatening him with violence unless he disclosed the password to his BTC wallet, which purportedly contained millions of dollars.
Neither Woeltz’s nor Duplessie’s lawyers provided immediate comments regarding the allegations. However, court documents indicate that Woeltz has been charged with kidnapping, assault, unlawful imprisonment, and criminal possession of a firearm.
Rising Trend Of Bitcoin Kidnappings
Woeltz’s background paints a stark contrast to his current predicament. Growing up in Paducah, Kentucky, he moved to invest in tech startups after graduating from the University of Kentucky.
He then entered the cryptocurrency arena in 2018, where he gained recognition as part of the winning team at the ETHGlobal San Francisco hackathon. Subsequently, he became the managing director of Silicon River Capital, a blockchain investment fund.
In recent years, Woeltz had shifted his focus to Bitcoin mining in Kentucky, even joining a state technology working group aimed at integrating blockchain technology into critical infrastructure and public services.
This incident highlights a troubling trend of violent kidnappings targeting wealthy Bitcoin owners. The rise of such crimes has prompted some individuals to seek “wrench attack” insurance, named after a meme that depicts bandits attempting to bypass high-tech security measures through brute force.
As of this writing, Bitcoin was trading at $108,680, with no change from Monday’s price. Compared to its recently reached record high of $111,800, BTC is trading over 3% below. However, in the monthly time frame, the Bitcoin price has held onto gains of 17%.
Featured image from DALL-E, chart from TradingView.com
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