Crypto trader tortured Italian man in NYC home in bid to steal his Bitcoin, authorities say

A man was arrested Friday after being accused of kidnapping an Italian tourist and torturing him for weeks inside a Manhattan home in a bid to steal the alleged victim’s Bitcoin, according to officials, law enforcement sources with direct knowledge of the investigation and a criminal complaint.

The victim was able to escape the home and run for help Friday morning, the law enforcement sources said. John Woeltz, 37, was taken into custody that same day and was arraigned Saturday on one count each of second-degree assault, kidnapping, unlawful imprisonment and criminal possession of a firearm, court records show.

Law enforcement sources close to the investigation said Woeltz and the tourist, along with a third person, had been in business together for years. Police are still searching for the third business partner, who has not been publicly identified.

The sources said Woeltz and the other person have allegedly gotten violent with the victim in the past, but never to this extent. They described the relationship between the three as very complex, and said it appears the victim was often picked on by the two men.

An attorney for Woeltz declined to comment Saturday. A judge granted a request to hold Woeltz in custody during Saturday’s arraignment. His next court date is Wednesday.

Italian man was allegedly held and tortured for 17 days

The tourist, a 28-year-old man visiting from Italy, met his alleged kidnapper on May 6, law enforcement sources said. That’s when, they said, Woeltz took the younger man to a home he was renting in Nolita, a neighborhood in Manhattan.

According to a criminal complaint, Woeltz and an unidentified “unapprehended male” kidnapped the victim, took his electronics and passport, and tortured him until he managed to escape weeks later.

The pair tried to get the tourist to give them the password to his Bitcoin account so they could steal the electronic currency, and when he refused, they beat him, shocked him with electric wires and hit him in the head with a gun over the course of weeks, the complaint said.

Woeltz and the other man allegedly pointed a gun at the victim’s head multiple times, dangled him over the ledge of the top flight of stairs in the home and threatened to kill him if he did not reveal his password, according to the complaint, which also alleged the pair threatened to have his family killed.

The tourist also told officials that the men tied his wrists and bound him to prevent him from moving, according to the complaint.

Law enforcement sources added that the men urinated on the victim and put an Apple AirTag around his neck to ensure he did not escape.

Upon his escape, the 28-year-old ran into a traffic agent who called police to the home on Prince Street. He told the agent he had been taken and held against his will and that he was repeatedly assaulted during his captivity, police said.

The alleged victim was taken to a hospital in stable condition, police said. When he approached officers Friday, he was covered in cuts and bruises with marks on his wrists where he was bound, law enforcement sources said.

Evidence found at suspect’s Manhattan home

Law enforcement sources said Woeltz is a prominent crypto currency trader from Kentucky, estimated to be worth around $100 million. The victim has an estimated worth of $30 million, they said.

Woeltz had reportedly been renting out the Prince Street residence at a monthly rate of between $30,000 and $40,000, the sources said. An online listing for the home says it was last rented in March for $75,000.

Law enforcement sources said there were cases of alcohol throughout the six-story residence, as well as stripper poles in the basement.

Those sources said officers turned up multiple Polaroid pictures of the victim being tied up and tortured at the home. Investigators also reportedly recovered several torture items.

Inside the residence, investigators on Saturday found a gun, believed to be the same one used to torture the victim, law enforcement sources said.

Neighbor shocked by details of arrest

Jennifer Crawford lives across the street from where the events unfolded Friday morning and saw Woeltz being arrested.

“I watched, like, the SWAT guys get out of the truck with their shields and everything and enter the building, and they were just starting to rope off the area and everyone’s yelling. It looked like they were a little bit in a panic,” she told NBC News.

She said she was shocked when she started learning more of the allegations.

“I just stood and froze,” she said. “A lot does go on here in New York. You can imagine, I’ve seen a lot, but this is the most unusual thing I’ve seen in 30 years in this neighborhood. I mean, that’s just beyond what you can even describe or imagine.”

Crawford said she couldn’t imagine the motive of someone with so much wealth committing this type of crime.

“All that money in the world didn’t do anything, it’s not going to help him,” she said. “Just doesn’t make sense, you know?”

On Saturday, hundreds of people passed by the townhome in Manhattan, some whispering about the details of the case. A few even took selfies in front of the home by the iron fence wrapped in police tape.

Police officials and investigators were in and out of the house Saturday, several standing guard in the front and recommending to those passing by to Google the home address to learn more.