New York Crypto Kidnapping Suspects Plead Not Guilty Amid Shocking Allegations

Two men accused of kidnapping and torturing a man in New York City to steal his cryptocurrency pleaded not guilty in Manhattan federal court on Tuesday, marking the latest high-profile case highlighting the dangers tied to digital asset wealth.

John Woeltz, 36, and William Duplessie, 32, were charged in connection with the violent February abduction of a man in the SoHo neighborhood. According to federal prosecutors, the pair allegedly lured the victim to a location under false pretenses, physically restrained him, and subjected him to repeated abuse while demanding access to his crypto wallet. Authorities say the attackers were attempting to extract passwords that would allow them to seize millions of dollars in Bitcoin.

The incident, which unfolded over several hours, ended only when the victim managed to escape and alert nearby pedestrians who called law enforcement. Court documents describe the ordeal as premeditated and brutal, with prosecutors stating that the attackers used physical violence and threats in an attempt to compel the victim to surrender his digital assets.

Inside the Investigation

The FBI and NYPD cybercrime task force coordinated the investigation, which quickly led to the arrests of Woeltz and Duplessie. Prosecutors allege that both men had knowledge of the victim’s cryptocurrency holdings and that they had planned the kidnapping well in advance.

Evidence submitted to the court includes encrypted communications between the suspects, surveillance footage placing them near the scene, and forensic analysis of their devices, which allegedly contained detailed notes about the victim’s digital footprint.

Defense attorneys for the accused entered not guilty pleas on all charges and pushed back against the prosecution’s narrative, stating that the government’s case relies heavily on circumstantial evidence and speculation. They claim the defendants had no prior criminal record and question the reliability of the victim’s account.

Crypto Wealth in the Crosshairs

The case has sparked renewed concern about the physical risks faced by individuals known to hold significant cryptocurrency assets. While digital security and wallet protection are often emphasized in the crypto community, physical security is now an increasingly urgent concern.

“This case reminds us that cryptocurrency is not just a digital vulnerability,” said Dana Wu, a blockchain security expert based in New York. “When attackers know where you are and what you have, it becomes a real-world threat.”

Incidents involving crypto-related extortion, home invasions, and kidnappings have seen a sharp increase in recent years as the value of digital assets has surged and become more visible in mainstream culture.

What Comes Next

Both suspects remain in federal custody without bail, pending trial. A pretrial hearing has been set for July, and the case is expected to draw significant media attention, given the rare and violent nature of the allegations.

Prosecutors have indicated they may pursue enhanced sentencing under federal cybercrime and kidnapping statutes, given the financial motive and digital targeting involved.

As the case unfolds, it adds to a growing list of legal and safety challenges facing the broader crypto ecosystem, which continues to expand in reach, value, and complexity. For many, the SoHo kidnapping is a stark reminder that wealth in the digital world can carry serious consequences in the physical one.