Wealthy 'crypto king' turned NYC townhouse into torture chamber to gain partner's Bitcoin, sources say

The 37-year-old Kentucky man charged with the kidnapping and torture of an Italian man allegedly held captive for weeks inside a Manhattan townhouse aimed to get the man's password to Bitcoin, law enforcement sources say.

John Woeltz, also known by some as the "crypto king of Kentucky," was arrested Friday and arraigned on charges of kidnapping, unlawful imprisonment and assault, among other charges.

Law enforcement sources said Woeltz and a business partner spent the last few weeks torturing their third partner, an Italian citizen, who arrived in New York City in early May. Investigators believe the relationship among the three men had been tumultuous in the past, but came to a head when the Italian arrived on May 6.

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Woeltz and the other partner are accused of taking the victim's passport and electronic devices, then demanding his Bitcoin password. When the 28-year-old refused, police said Woeltz and the other man pistol-whipped the victim, held a gun to his head, used a chainsaw on his leg, urinated on him, tied his wrists, dangled him off the building and threatened his family.

When the victim managed to escaped on Friday morning, more than two weeks after the torture started, police found him covered in cuts and bruises. There were ligature marks on his wrists from being bound.

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Detectives are still searching for the third business partner.

Following the arrest of Woeltz, investigators allegedly found a trove of evidence at the rented out home. Law enforcement sources said they turned up multiple Polaroid pictures of the victim being tied up and tortured. Investigators also reportedly recovered a gun and several torture items.

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Authorities believe Woeltz is a big-name crypto currency trader from Kentucky with an estimated worth around $100 million. He had reportedly been renting out the Nolita residence at a monthly rate of at least $30,000.

The luxury six-story Prince Street townhouse had an elevator and was described by sources as a high-end frat house with bottles of liquor strewn about and stripper poles in the basement. Neighbors said they could hear loud partying at all hours of the night, but they had no idea of the alleged torture going on within its walls.

Woeltz is being held without bond. His attorney did not speak to the media after a Saturday morning arraignment.