Manhattan Crypto Investor Faces Charges in Bitcoin Extortion Scheme—Because Even Digital Gold Needs Old-School Thugs

New York prosecutors drop the hammer on a Bitcoin investor accused of crossing the line from HODLing to strong-arming. Turns out decentralized finance still needs centralized handcuffs.

Allegations include violent threats tied to Bitcoin demands—proving crypto’s wild west phase isn’t quite over. Meanwhile, Wall Street bankers sip lattes and whisper ’AML compliance’ with smug satisfaction.

Lesson for 2025: Blockchain eliminates middlemen, but apparently not human greed. The more things change...

Victim Escapes After Weeks of Abuse in Bitcoin Ransom Plot, Police Say

Authorities said Woeltz and an unidentified male accomplice stole the victim’s passport and electronic devices. Then, they demanded the password to his Bitcoin wallet. When the man refused, the attackers bound him and beat him. They also shocked him with wires and threatened him with a gun.

In one instance the men allegedly suspended the victim over a stairwell. They warned him that he would be killed if he didn’t comply. Later, they escalated the threats further by saying they would harm his family.

On Friday, the man, fearing for his life, agreed to retrieve his password. He told the attackers it was stored on a laptop in another room.

Then, as Woeltz turned his back, the victim seized the opportunity and fled. He ran toward a nearby traffic agent, who immediately called for help. Shortly after, officers from the Fifth Precinct arrived and took Woeltz into custody. The victim was taken to Bellevue Hospital and is reported to be in stable condition.

Police Find Torture Evidence in Manhattan Townhouse

A search of the townhouse uncovered disturbing evidence. Officers found Polaroid photos showing the man bound and assaulted. In addition, they recovered a firearm, cocaine, and various items including chicken wire, a saw, body armor, ammunition and night vision goggles. Meanwhile, two butlers working at the residence agreed to speak with the police.

Another person, Beatrice Folchi, was also arrested and charged with kidnapping and unlawful imprisonment. The Manhattan District Attorney’s Office, however, declined to prosecute her at this time, citing the need for further investigation.

Woeltz was arraigned on Saturday in Manhattan criminal court. He was charged with kidnapping, assault, unlawful imprisonment and criminal possession of a weapon. Additionally, the judge ordered him held without bail and required him to surrender his passport. Prosecutors also noted that he has access to a private jet and a helicopter, which raised concerns about his flight risk.

The incident reflects a growing wave of violent attacks targeting cryptocurrency holders and industry executives, whose digital wallets, often secured by a single password, present an attractive target.

Earlier this month, armed men in central Paris attempted to abduct the daughter of a prominent crypto executive and her two-year-old child in broad daylight. As the value of bitcoin and other digital assets has soared in recent years, so too has the incentive for criminals to sidestep sophisticated cyber defenses and instead use physical force to gain access.