Second Suspect Surrenders in Alleged New York Crypto Kidnapping Case — WSJ

By James FanelliTwo crypto investors face kidnapping charges for allegedly holding a wealthy trader captive in a Manhattan townhouse for three weeks for his bitcoin, law-enforcement officials said Monday.The New York case is one of a raft of violent alleged abductions around the world this year linked to cryptocurrency, a trend that has rattled executives and their families, as well as individuals who have large, publicly disclosed holdings.John Woeltz, 37 years old, was arraigned Saturday in a state court in Manhattan on five counts, including kidnapping, assault and unlawful imprisonment, for allegedly tying up and torturing the victim in hopes of obtaining the password to the man's crypto account, according to a criminal complaint.William Duplessie, an alleged accomplice of Woeltz, surrendered to police on Tuesday morning, according to New York Police Department Commissioner Jessica Tisch. Duplessie had yet to be arraigned in state court Tuesday afternoon, but he was expected to be charged with kidnapping and unlawful imprisonment, Tisch said in a television interview.A judge ordered Woeltz be detained in a New York City jail, according to a spokeswoman for the Manhattan district attorney's office, which is handling the case. Woletz, who is from Kentucky, previously worked on a privacy-preserving cryptocurrency project, records show. His lawyer didn't respond to a request for comment.Duplessie is the former chief executive of a Swiss crypto investment firm, records show. A lawyer for Duplessie declined to comment.The alleged kidnapping was the latest in a wave of global abductions, including several in the U.S., targeting crypto holders and their families. The draw for abductors is the surge in value of some cryptocurrencies. Hackers have long tried to steal funds from digital wallets by exploiting vulnerabilities and tricking individuals into divulging passwords. But crypto investors are increasingly keeping their digital wallets offline, leading to violent real-world encounters over the funds.Last year, a Connecticut couple driving a Lamborghini was kidnapped by six men who wanted to hold them for ransom because they thought their son held a vast amount of cryptocurrency, according to federal prosecutors. At least five crypto-related abductions have taken place in France in recent months, The Wall Street Journal reported earlier this month. In March, robbers invaded the home of a Houston crypto influencer in the middle of the night, demanding her laptop.The bizarre Manhattan abduction began on May 6, when the victim, an associate of the two men, arrived at a townhouse in Manhattan's Nolita neighborhood, according to the criminal complaint.Woeltz took the victim's electronic devices and passport, then demanded the password to his crypto account, prosecutors said. When the victim refused, he was beaten, shocked with electric wires and hit on the head with a firearm, they said.Woeltz also threatened to kill the victim while he was also held over the ledge of the top flight of stairs in the Manhattan home, the complaint said. Woeltz also threatened to kill the victim's family, according to the complaint.The victim managed to escape from the home and flag down a uniformed traffic agent for help, according to a police official.Write to James Fanelli at [email protected]