The “Crypto King of Kentucky” has been arrested on allegations that he kidnapped and violently abused a 28-year-old Italian man for in a high-end Manhattan residence.
Italian man tortured for Bitcoin password
John Woeltz, 37, was taken into custody on May 23, after the alleged victim managed to escape from a luxury apartment in the Nolita neighborhood that morning.
The injured Italian man flagged down a traffic officer, claiming he had been “held against his will” since May 6, according to a statement from the New York Police Department.
“The male [tourist] further stated he had been routinely assaulted during his captivity,” the NYPD said.
The Italian man was later transported to NYC Health and Hospitals, where he was listed in stable condition following weeks of forced confinement and torture.
By the following day, May 24, Woeltz was formally charged with two counts of second-degree assault, along with one count each of kidnapping, unlawful imprisonment, and criminal possession of a weapon.
The Manhattan District Attorney’s Office confirmed that Woeltz is being held without the option for bail.
The Associated Press reported that the Italian tourist’s confinement was tied to his unwillingness to surrender his Bitcoin password.
24-year-old Beatrice Folchi, was also arrested on May 24. She faces charges of first-degree kidnapping and first-degree unlawful imprisonment.
According to CBS News, police believe she was involved in the crime, and law enforcement sources told the New York Post that Folchi had been working as Woeltz’s assistant.
Despite the charges filed against her, the Manhattan District Attorney’s Office has chosen not to proceed with prosecuting Folchi at this stage, citing the need for further inquiry.
Italian man held hostage by Crypto King of Kentucky
According to police sources cited by WNBC, the victim arrived in the United States from Italy on May 6 and traveled to a rented townhouse in Manhattan where Woeltz was staying. The two had previously collaborated on business ventures but got into a fight.
After a falling out, the victim had returned to Italy, but police sources say Woeltz allegedly persuaded him to come back to New York.
Upon arrival at the property, Woeltz allegedly seized the man’s passport, and what followed, according to police, was an extended period of physical torment.
Investigators reportedly discovered a number of Polaroid photographs showing the victim bound and visibly distressed.
Some of the images depicted particularly graphic scenes—one showed a firearm aimed at the man’s head, while another portrayed him being forced to smoke crack cocaine from a glass pipe.
Law enforcement officials said they also uncovered a collection of disturbing items inside the residence, which they described as resembling a torture chamber.
The inventory included a gun, ammunition, night vision goggles, ballistic helmets, a bulletproof vest, and an array of torture devices.
Prosecutors said bloodstains were found in parts of the property, confirming the severity of the scene.
Police claim that Woeltz, along with an unidentified accomplice, pistol-whipped the man, urinated on him, and used a chainsaw on his leg.
They reportedly tied the victim’s wrists, dangled him from the building, and issued threats toward his family.
When he managed to flee on the morning of May 23, the man was found covered in visible wounds—cuts, bruises, and ligature marks around his wrists, consistent with having been bound for an extended time.
Authorities have identified Woeltz as a high-profile crypto trader originally from Kentucky, with an estimated net worth of approximately $100 million. The victim’s wealth was also estimated, reportedly around $30 million.
Woeltz had been leasing the Nolita residence, a six-story townhouse on Prince Street, for at least $30,000 a month.
According to reports, the property was outfitted with luxury amenities and had been characterized by sources as a lavish party house.
Stripper poles were installed in the basement, and liquor bottles were said to be scattered throughout the home.
Neighbors described frequent, late-night partying, but were unaware of the alleged crimes occurring inside.
Relative claims Woeltz is the real victim
A family member of Woeltz defended him in comments to the New York Post, insisting that he is not guilty and describing him as someone who was manipulated.
“He’s a kind, caring, loving person, so he was completely controlled by other people,” the relative claimed.
“I’m getting calls from John’s friends, girlfriends, everyone saying, ‘John was railroaded, this person hijacked his life,’” she said.
“He was hijacked and manipulated and scammed. I think they stole his money as well,” the relative continued. “He’s a victim.”
Woeltz appeared in Manhattan Criminal Court on Saturday and was ordered to remain in custody without bail, then instructed to have no contact with the victim.
When asked by Judge Eric Schumacher if he had possessed a firearm, Woeltz responded, “yes.”
His attorneys clarified to the court that while Woeltz did not have a weapon in New York, he did legally possess one in Kentucky.
The charges against him could result in a sentence ranging from 15 to 25 years if he is convicted.
A Swiss cryptocurrency investor has reportedly become a person of interest in the investigation.
Authorities expect the unnamed individual to voluntarily turn himself in to the NYPD sometime this week.
