From Coerced Wallets to Real-World Violence: The Rise of Crypto Kidnappings

Main Points:

• Brutal SoHo Hostage Plot: Two cryptocurrency investors allegedly kidnapped and tortured an Italian man in a Manhattan townhouse to steal his wallet password.
• Evidence of Torture: Police uncovered saws, body armor, Polaroid photos of abuse, and signs of electric shock.
• Global Surge in “Wrench Attacks”: Physical coercion targeting crypto holders is escalating in France and beyond, with at least a dozen suspects arrested.
• France’s Security Response: The French government has rolled out priority emergency lines, home security assessments, and officer training in “anti-crypto asset laundering.”
• Industry Implications: As decentralized finance grows, so does the real-world risk to wealthy holders—prompting calls for personal security, multi-sig wallets, and stricter data privacy.
• Future Outlook: Comprehensive security strategies, regulatory cooperation, and user education are vital to counter the physical threats facing the crypto community.

A Brutal Heist in SoHo

In May 2025, New York City law enforcement uncovered a chilling plot: two cryptocurrency investors allegedly kidnapped and held hostage a 28-year-old Italian national, Michael Carturan, in a luxury SoHo townhouse, torturing him over weeks to extract his Bitcoin password. The victim escaped barefoot and bloodied, flagging down a traffic officer, which led to the arrest of John Woeltz, 37, and the subsequent surrender of William Duplessie, 32 — both described as affluent crypto entrepreneurs with ties to blockchain ventures.

Court documents reveal that Duplessie and Woeltz subjected Carturan to repeated beatings, electric shocks, pistol-whipping, and even threatened him with a chainsaw—all under the guise of forcing wallet access. Investigators emphasize that this method, increasingly dubbed a “wrench attack,” bypasses digital defenses by exploiting physical violence as a means to seize decentralized assets.

Evidence of Torture Uncovered

When officers raided the SoHo property, they discovered a distressing array of instruments engineered for violence: a chainsaw blade, reinforced body armor, dark-vision goggles, chicken wire restraints, ammunition, and Polaroid photographs documenting the victim’s suffering. The presence of these items indicates both premeditation and a disturbing willingness to commodify brutality for financial gain.

Importantly, the Polaroid photos suggest that the perpetrators intended not only to torture but to record and perhaps distribute images as a form of intimidation—underscoring how digital-era crimes can blend physical coercion with psychological warfare. This combination of real-world violence and digital extortion signals a dangerous evolution in asset theft.

Global Surge in Crypto-Related Violent Crime

This SoHo incident is not isolated. Across the Atlantic, France has encountered a wave of crypto-motivated kidnappings since early 2025. Victims have included industry founders, executives, and their families—often abducted in broad daylight or from their homes, with ransom demands reaching into the millions of euros.

According to a May 27 report, French authorities have arrested over 12 suspects connected to at least two successful kidnappings and one failed attempt, all involving crypto high-rollers. Investigators believe a structured criminal organization is orchestrating these attacks, leveraging social-media recruitment to enlist accomplices among underpaid youth.

France’s Response: Enhanced Security for Entrepreneurs

In response to this alarming trend, the French Interior Ministry, led by Bruno Retailleau, announced comprehensive protective measures for cryptocurrency entrepreneurs and their families. These include:

1. Priority Police Emergency Line: Direct access for vetted individuals to accelerate response times.
2. Home Security Assessments: Law enforcement officers conduct on-site reviews and recommend improvements.
3. Safety Briefings: Tailored training on risk mitigation and personal security best practices.
4. Officer Training in Anti-Crypto Asset Laundering: To better understand modern threats and investigative techniques.

Retailleau stated, “These repeated kidnappings of professionals in the crypto sector will be fought with specific tools, both immediate and short-term, to prevent, dissuade and hinder in order to protect the industry”.

Understanding “Wrench Attacks” and Their Appeal

Security experts warn that physical coercion tactics, known as “wrench attacks,” have risen as criminals find them more straightforward than hacking sophisticated wallet encryptions. By terrorizing victims into revealing passcodes, attackers exploit crypto’s self-custodial nature—there is no central authority to reverse or freeze transactions once access is granted.

Moreover, public leaks of personal data—such as breach disclosures from major exchanges—allow criminals to identify and track wealthy holders. A victim’s ostentatious social-media presence can further paint a target on their back, signaling potential gain to organized crime networks adapting to these new vulnerabilities.

Implications for Crypto Investors

The blending of digital assets with real-world violence has profound implications:

• Personal Security as Asset Protection: Investors must consider bodyguards, secure travel protocols, and private surveillance as integral to wealth management.
• Data Privacy Measures: Minimizing public exposure of holdings and travel plans, employing pseudonymous identities, and using privacy-focused wallets.
• Multi-Signature Wallets: Requiring multiple approvals for transactions adds friction that can thwart coercion attempts.
• Regulatory and Law Enforcement Coordination: Cross-border intelligence sharing, specialization in crypto crimes, and public–private partnerships are essential.

Industry veterans now view asset management holistically—extending beyond keys and seed phrases to encompass physical safety and geopolitical risk analysis.

Future Outlook: Building Resilience

To stem the tide of crypto-motivated kidnappings, stakeholders must pursue a multi-pronged strategy:

1. Enhanced Regulatory Frameworks: Governments should mandate minimum security standards for prominent investors and require reporting of extortion attempts.
2. International Cooperation: Crypto crimes often cross borders; bilateral and multilateral law-enforcement collaborations are key to dismantling criminal networks.
3. Technology Solutions: Innovations like biometrically-secured hardware wallets, time-locked multi-sig protocols, and emergency “kill switches” can add layers of defense.
4. Community Awareness and Education: Forums, conferences, and media campaigns to inform holders about emerging threats and best practices.

While decentralized finance offers unprecedented financial autonomy, these benefits bring new responsibilities—and, regrettably, new dangers. Only by integrating physical security, technological innovation, and regulatory alignment can the crypto ecosystem safeguard its most vulnerable actors.

Conclusion

The harrowing SoHo kidnapping case—and its echoes in France and beyond—underscores a stark reality: the border between digital assets and physical danger is dissolving. As crypto holdings escape the confines of regulated banks, they become potent magnets for violent extortion. For investors, technologists, and policymakers alike, the imperative is clear: evolve protective measures as rapidly as criminals adapt their tactics. By prioritizing personal security, privacy, and collaborative enforcement, the industry can build resilience against a new frontier of real-world crypto crime.