Bitcoin’s Dark Side: Manhattan Court Denies Bail in Grisly Crypto-Extortion Case

Two suspects face indefinite detention as prosecutors allege a brutal scheme—where digital currency met old-fashioned violence.

Welcome to crypto’s underbelly, where blockchain anonymity fuels crimes even traditional banks would find too crude. The case exposes Bitcoin’s paradoxical role: both revolutionary asset and criminal enabler.

Meanwhile, Wall Street still can’t decide whether to ban crypto or package it into ETFs—whatever earns the fattest fee.

TLDR

• William Duplessie, 32, was indicted on kidnapping, assault, and weapons charges for allegedly torturing an Italian crypto investor for 17 days in a Manhattan townhouse
• John Woeltz, 37, was denied bail despite his attorney’s request for $2 million bond, citing his lack of criminal record and technology background
• The 28-year-old Italian victim was allegedly tortured with electrical wires, forced to smoke cocaine, and dangled from a five-story staircase to access his Bitcoin wallet
• Police found weapons, body armor, cocaine, and Polaroid photos of the victim with a gun to his head when they searched the Soho townhouse
• The victim escaped barefoot and bloodied on May 23 after pretending to agree to surrender his password while captors retrieved a laptop

Two Crypto Investors Indicted in Manhattan Bitcoin Torture Case

A Manhattan grand jury has indicted William Duplessie, 32, on kidnapping, assault, unlawful imprisonment, and weapons possession charges.

The indictment stems from an alleged 17-day kidnapping and torture plot targeting an Italian crypto investor.

Duplessie worked alongside John Woeltz, 37, in the alleged scheme that began on May 6. The two men reportedly lured their victim to an upscale Soho townhouse by threatening to kill the victim’s family members.

The 28-year-old Italian national was held captive for over two weeks in the Manhattan property. During this time, prosecutors allege the victim endured severe physical and psychological abuse designed to force access to his Bitcoin wallet.

Court documents reveal the victim was tortured with electrical wires and forced to smoke cocaine from a crack pipe. In one instance, the captors allegedly dangled him from a five-story high staircase as part of their intimidation tactics.

The victim was also reportedly pistol-whipped by Woeltz during the ordeal. The sustained abuse was part of an effort to extract the password to the victim’s digital cryptocurrency assets.

The Escape

The kidnapping came to an end on the morning of May 23 when the victim saw an opportunity to flee. After being pistol-whipped and fearing for his life, he pretended to agree to surrender his password.

While Woeltz and Duplessie went to retrieve a laptop from another room, the victim rushed downstairs and escaped onto the streets. He was found disheveled, bloodied, and barefoot by a traffic enforcement officer on Mulberry Street.

Evidence Found at Scene

Police searching the townhouse discovered extensive evidence of the alleged crimes. Items found included a saw, cocaine, chicken wire, body armor, night-vision goggles, ballistic helmets, and ammunition.

Investigators also uncovered Polaroid photographs showing the victim with a gun pointed to his head. Additional photos showed the victim with a cocaine pipe, documenting the abuse he endured.

Court Proceedings

Woeltz was denied bail on Thursday after his attorney requested release on a $2 million bond. Wayne Gosnell, representing Woeltz, cited his client’s lack of criminal record, philosophy degree, and professional accomplishments in the technology sector.

“He’s been very successful in the technology world,” Gosnell told the Manhattan judge. The attorney added that Woeltz had “every intention to fight this case.”

Duplessie surrendered to Manhattan police on Tuesday and also requested $1 million bail. However, he was denied release due to the severity of the charges against him.

A third individual, Beatrice Folchi, was arrested and charged with first-degree kidnapping and unlawful imprisonment. Folchi was released pending further investigation into her role in the alleged plot.

Both Duplessie and Woeltz have been described as cryptocurrency investors who knew the victim personally. Woeltz has previously described himself as a blockchain investor with experience in Silicon Valley before returning to Kentucky’s crypto-mining industry.

The indictments for both men will remain sealed until their arraignment scheduled for June 11. Both defendants remain in custody as the case moves forward through the Manhattan court system.