The two men accused of kidnapping and torturing a Bitcoin trader have been released on bail set at $1 million each, despite the risk of facing life imprisonment. John Woeltz (dubbed the 'king of cryptocurrency in Kentucky') and his accomplice William Duplessie were granted bail by Manhattan Judge Gregory Carro, rejecting the prosecutor's argument for their detention.
Surge in 'key-turning' attacks in the Crypto space
Both have pleaded not guilty to charges including first-degree kidnapping, assault, and weapon possession. Judge Carro cited doubts about the reliability of the witness and conflicting testimonies from both sides as the deciding factor for bail. This case is part of a growing trend of 'key-turning' attacks – violent crimes where perpetrators use force to compel cryptocurrency holders to disclose wallet passwords.
The allegations stem from a horrific incident that began on May 6, when Woeltz and Duplessie were accused of luring a 28-year-old Italian businessman to a luxury apartment in SoHo under false pretenses. Prosecutors claim the defendants tortured the victim for two weeks using brutal methods such as electrocution, beatings with various weapons, and threats to kill the victim's relatives, in an effort to force him to hand over access to cryptocurrency assets. #italia
However, the defense attorney presented a video purportedly showing the victim willingly having fun, although prosecutors dismissed this, arguing that victims of trauma often exhibit complex behaviors. Jameson Lopp, CTO of Casa, has created a public database tracking physical attacks against cryptocurrency holders, recording over 200 incidents, more than 30 of which occurred in just the first half of 2025.
While on bail, the two defendants must wear electronic monitoring devices and surrender their passports. Experts recommend that cryptocurrency holders use multi-signature wallets, decoy wallets, and self-destruct protocols for devices when coerced to protect themselves. #anhbacong
