A cryptocurrency investor, John Waltz, is in custody in New York after being charged with the kidnapping and torture of a 28-year-old man in a bid to access his Bitcoin wallet. Authorities allege that Waltz kept the victim captive for weeks in a luxury Manhattan townhouse, employing extreme measures to coerce him into revealing his digital wallet’s password.
Prosecutors revealed a harrowing sequence of events. Waltz, a 37-year-old originally from Kentucky, allegedly lured the victim to a high-end apartment in Manhattan’s Soho neighborhood. Over several days, Waltz reportedly tied the man with wire, shocked him with a taser while his feet were submerged in water, and even dangled him over a ledge. He also threatened the victim’s family with harm if he did not comply.
Last Friday, fearing for his life, the victim finally provided the password. While Waltz left the room to access a computer, the man seized the opportunity to escape, flagging down a traffic officer on the street. Authorities promptly responded, leading to Waltz’s arrest.
A search of the townhouse uncovered chilling evidence, including ammunition, cocaine, body armor, an electric saw, night vision goggles, and Polaroid photos of the victim tied up with a gun aimed at his head. Prosecutors also found the chicken wire used to restrain the victim.
Waltz, described as having significant means, including access to a private helicopter and jet, was denied bail. His passport was confiscated, and he is expected to appear in court soon.
This incident is part of a growing trend of violent crimes targeting individuals with significant cryptocurrency holdings. Similar cases have been reported worldwide. In France, recent weeks saw the attempted abduction of a crypto tycoon’s daughter and the kidnapping of a cryptocurrency executive’s father, who suffered severe injuries before being rescued.
Carol Alexander, a finance professor at the University of Sussex and a crypto expert, attributes the rise in these crimes to the surging value of Bitcoin and other cryptocurrencies. “The scale of these attacks is unprecedented,” Alexander noted, emphasizing that while cryptocurrency transactions are traceable, perpetrators often rely on victims’ reluctance to involve authorities.
Crypto experts urge investors to adopt stringent security measures. Using “cold wallets” — offline storage devices for cryptocurrency — is recommended to protect digital assets from online hacks. Investors are also advised to avoid storing large sums on exchanges and to use well-regulated platforms to mitigate risks.
Despite advancements in tracing crypto transactions, the combination of anonymity and the high value of digital assets makes cryptocurrency holders prime targets for both cyber and physical crimes. Authorities continue to urge vigilance among crypto investors to safeguard both their wealth and personal safety.