NEW YORK — A cryptocurrency investor faces multiple felony charges after allegedly kidnapping and torturing a fellow trader for weeks in a Manhattan townhouse to extort his Bitcoin password, authorities revealed this week.
John Woeltz, 37, was arrested Friday after the 28-year-old victim escaped and flagged down a police officer, according to the NYPD. Prosecutors allege the victim was lured to Woeltz’s home under the guise of recovering Bitcoin he was previously coerced into transferring.
Details of the Alleged Torture
During his May 24 arraignment, prosecutors detailed harrowing claims: the victim reported being shocked with electric wires, cut with a saw, and forced to smoke crack cocaine to compel him to disclose his password. Investigators recovered a saw, ballistic gear, and photos of the victim with a gun to his head.
Woeltz, charged with assault, kidnapping, unlawful imprisonment, and criminal gun possession, remains held without bail. His next hearing is set for May 28.
Parallel Crypto Fraud Case Emerges
The arrest coincides with a separate Manhattan prosecution targeting cryptocurrency fraud. On May 22, District Attorney Alvin Bragg announced charges against Michael Lauchlan, 37, and Gary Zaydman, 44, co-founders of Coin Dispute Network. The duo allegedly used actors to fabricate client testimonials, duping victims into paying fees for fake crypto recovery services. They face grand larceny, identity theft, and conspiracy charges.
Trump’s Meme Coin Dinner Draws Protests, High-Profile Attendees
Meanwhile, former President Donald Trump hosted a private dinner at his Virginia golf club on May 22 for buyers of his meme cryptocurrency. Attendees, including billionaire Justin Sun—whose 2023 SEC fraud case was recently paused—spent an estimated $148 million on the tokens for entry, per crypto analytics firm Inca Digital.
Outside the event, over 100 protesters rallied with signs like “Stop Crypto Corruption,” reflecting growing scrutiny over political ties to digital assets.
Major Banks Mull Joint Stablecoin Venture
In a strategic shift, Wall Street giants JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo are exploring a consortium to launch a shared stablecoin, The Wall Street Journal reported May 22. While talks are preliminary, the move signals institutional interest in blockchain-based currency. Citigroup and Bank of America declined to comment.
