Cryptocurrency Perpetrators Arrested in NYC Alleged Violence Case Granted Bail for $1 Million Each
John Woeltz, dubbed the "crypto king of Kentucky," and his associate, William Duplessie, have pleaded not guilty to charges including first-degree kidnapping, assault, and weapons possession. The charges were reported by ABC News. While out on bail, the defendants must wear electronic monitoring devices.
The alleged incident occurred on May 6, when the victim was lured to an upscale SoHo residence under false pretenses by Woeltz and Duplessie. The ordeal lasted for two weeks, during which the victim was subjected to physical abuse and medieval-style torture methods.
The growing trend in "wrench attacks" involves criminals bypassing digital security by using physical force to coerce crypto holders into surrendering their wallet passwords. To defend against such attacks, experts recommend a combination of digital and physical protections.
- Use Multisignature (Multisig) Wallets: Multisig wallets require multiple private keys held by different people or locations to approve a transaction. This arrangement means an attacker cannot single-handedly force funds to move and provides opportunities to signal distress if coerced physically.
- Cold Storage with Hardware Wallets: Store private keys offline in reputable hardware wallets like Ledger or Trezor to reduce exposure to hacking and malware. These devices are tamper-resistant and separate the keys from internet access, minimizing risk from digital attacks that could complement physical threats.
- Avoid Publicizing Wealth or Crypto Holdings: Reducing visibility helps prevent becoming a targeted victim of physical attacks. Avoid sharing or advertising crypto-related wealth or trading activity on social media or public forums.
- Personal Security Practices: For large holders, applying conventional personal security measures is recommended, such as hiring professional bodyguards or security consultants, varying daily routines, and remaining vigilant for signs of surveillance or stalking.
- Use of Duress or Distress Codes: In multisig setups, establish duress codes with trusted co-key holders. If under coercion, the owner can send a prearranged signal to prevent unauthorized transactions or trigger protective actions.
- Geographical Distribution of Keys: Store multisig keys across different physical locations and with individuals unknown to potential attackers, limiting the risk that a single coercion or attack compromises the entire wallet.
- Layered Digital Security: Combine offline storage with strong passwords, two-factor authentication, regular firmware updates for hardware wallets, and secure backup procedures to mitigate theft and unauthorized access.
These protective measures aim to drastically reduce the risk of theft through coercion or violence. Jameson Lopp, CTO of security firm Casa, maintains a public database tracking physical attacks against crypto holders and has documented over 200 such incidents. With more than 30 such incidents occurring in the first half of 2025 alone, it is crucial for crypto holders to prioritize their security.
Both men face life in prison if convicted. They have relinquished their passports while awaiting trial. Judge Gregory Carro approved the bail for the two men, citing questions about witness reliability and conflicting narratives from both sides as factors in his decision.
[1] Lopp, Jameson. "The Crypto Crime Report." Casa. (2021). [Online]. Available: https://casa.io/crypto-crime-report/
[2] Ledger. "Ledger Nano X." Ledger. (2019). [Online]. Available: https://www.ledger.com/products/ledger-nano-x
[3] Lopp, Jameson. "Security for Large Bitcoin Holders." Bitcoin Magazine. (2018). [Online]. Available: https://bitcoinmagazine.com/articles/security-for-large-bitcoin-holders/
[4] Lopp, Jameson. "The Crypto Crime Report." Casa. (2020). [Online]. Available: https://casa.io/crypto-crime-report/
[5] Trezor. "Trezor Model T." Trezor. (2018). [Online]. Available: https://shop.trezor.io/trezor-model-t/
- The growing trend in "wrench attacks" on crypto holders highlights the importance of multisignature (Multisig) wallets, which require multiple private keys held by different people or locations to authorize a transaction, offering a defense against physical coercion.
- To minimize exposure to hacking and malware, store private keys offline in reputable hardware wallets like Ledger or Trezor, such as Ledger Nano X and Trezor Model T. These tamper-resistant devices separate keys from internet access and reduce the risk from digital attacks that could complement physical threats.
- To avoid becoming a targeted victim, avoid publicizing crypto-related wealth or trading activities, and refrain from sharing such information on social media or public forums.
- Large crypto holders may consider applying conventional personal security measures such as hiring professional bodyguards or security consultants, varying daily routines, and remaining vigilant for signs of surveillance or stalking to protect themselves.
- In multisig setups, establish duress or distress codes with trusted co-key holders. If coerced, the owner can send a prearranged signal to prevent unauthorized transactions or trigger protective actions.
- Geographical distribution of keys across different physical locations and with individuals unknown to potential attackers can limit the risk that a single coercion or attack compromises the entire wallet.
- Implementing a layered digital security strategy that combines offline storage with strong passwords, two-factor authentication, regular firmware updates, and secure backup procedures can help mitigate theft and unauthorized access.
These protective measures are crucial in responding to the growing number of physical attacks against crypto holders, as documented by Jameson Lopp, CTO of security firm Casa, in his "The Crypto Crime Report." For example, in the first half of 2025, over 30 such incidents were reported, emphasizing the need for heightened security awareness among crypto holders.
