The second suspect has surrendered in a shocking case of crypto torture in New York City.
A Swiss cryptocurrency investor, who is said to have been involved in blackmailing a man for his bitcoin, is likely to surrender to cops in New York City after an arrest was made of an accomplice, John Woeltz, in what they say is likely to be one of the most serious crimes involving cryptocurrencies.
John Woeltz, the so-called “Crypto King of Kentucky,” was taken into custody after a 28-year-old Italian tourist managed to flee from a swanky Manhattan townhouse. The tourist claims he was held hostage and tortured for some 21 days. According to authorities, Woeltz, 37, demanded the crypto wallet seed phrase from the victim and inflicted physical violence, electric shocks, and psychological threats, including convincing the victim that his family was in danger.
Woeltz and his unnamed Swiss co-conspirator planned to acquire the victim’s cryptocurrency assets, according to law enforcement reports. The second person, who is believed to be Woeltz’s business partner and co-founder of a Swiss cryptocurrency firm, has not yet been named and is reportedly preparing to turn himself in. However, some sources suggest he may already be in custody.
On May 6, the victim, who comes from Italy, came to New York as per court documents. The accused tied up and tortured the victim, using wires to shock him. The investigators said that during his captivity, the accused assaulted him with a firearm while dangling him over a ledge on the staircase. At one point, Woeltz allegedly threatened to kill him if he did not divulge his Bitcoin password.
The victim had agreed to go into the adjacent room to get a laptop to retrieve his seed phrase on May 23. Once Woeltz turned his back, he ran out of the building and got the attention of a passing cop.
Afterward, investigators searched the townhouse and found a disturbing collection of drugs and weapons, including cocaine, a saw, chicken wire, body armor, ammunition, night vision goggles, and Polaroids of the victim being held at gunpoint.
Woeltz is presently facing a slew of felony charges, including kidnapping, unlawful imprisonment, assault and criminal possession of a firearm. Because he has a private jet and helicopter, he is considered a high flight risk and is held in custody without bail. He is scheduled to appear in court again on Wednesday.
At the same time, authorities are working to uncover if the victim was a target from a prior crypto experience or was lured into something he was not expecting.
This incident has shocked both the crypto and legal spheres. It has revealed the dark side of digital money. It has shown how deadly untraceable digital money is in the real world.
