A cryptocurrency investor is accused of kidnapping, beating and torturing a 28-year-old man

John Woeltz, 37, was taken into custody Friday after the victim, also an investor, escaped from a luxury Manhattan townhouse and stopped an officer on the street

A cryptocurrency investor is accused of kidnapping, beating and torturing a 28-year-old man for weeks in a scheme to obtain his Bitcoin password, authorities say.

John Woeltz, 37, was taken into custody Friday after the victim, also an investor, escaped from a luxury Manhattan townhouse and stopped an officer on the street, police said in a statement. The victim, who police did not identify, told the officer he had been held and repeatedly assaulted since May 6.

Officers went to the townhouse and arrested Woeltz, who is charged with assault, kidnapping, unlawful imprisonment and criminal possession of a gun. Woeltz was arraigned May 24, ordered held without bail and faces another court hearing May 28.

CBS News reported that at the arraignment, prosecutors said the victim was lured to the home by being told he would be able to retrieve Bitcoin, which he had allegedly been forced to send Woeltz. One Bitcoin is currently worth more than $100,000.

Prosecutors said the victim told them that while he was being held, he was shocked with electric wires, his leg was cut with a saw, and he was forced to smoke crack cocaine in an effort to make him give up his Bitcoin password.

Police later recovered a saw from the home, prosecutors said. Prosecutors said chicken wire, ballistic helmets, body armor, night vision goggles and photos of the victim with a firearm pointed at his head, were seized at the scene.

The prosecutor's office did not immediately respond to a USA TODAY request for information on the case.

Bitcoin soars past $109K as Nasdaq rallies and JPMorgan embraces cryptocurrency

One day earlier on May 22, Manhattan District Attorney Alvin L. Bragg, Jr., announced charges against two men in alleged conspiracy to steal from customers of their cryptocurrency asset recovery business, Coin Dispute Network, which claimed it could trace and recover cryptocurrency in exchange for a fee.

Michael Lauchlan, 37, and Gary Zaydman, 44, were charged in a New York State Supreme Court with conspiracy, identity theft, multiple counts of grand larceny and related crimes charges. Bragg said the men allegedly paid for fake advertising, using actors to pose as satisfied clients, and posted those testimonials on thier website and YouTube.

Trump celebrates his meme coin with dinner

Buyers of President Donald Trump's meme coin gathered on May 22 for an exclusive dinner at his private country club overlooking the Potomac River outside the nation’s capital. Trump arrived by Marine One helicopter as more than 100 protesters at the Trump National Golf Club crowded along the edge of the parking lot along the street. Signs included, “America is not for sale,” “stop crypto corruption" and “release the guest list."

Among those in attendance was China-born crypto entrepreneur and billionaire Justin Sun. In February, the U.S. Securities and Exchange Commission paused its 2023 fraud case against Sun, citing "public interest."

Investors spent an estimated $148 million on Trump's meme coin to secure their seats at the dinner. The top-25 holders spent more than $111 million, according to crypto intelligence firm Inca Digital.

Banks consider issuing their own cryptocurrency

Some of the biggest U.S. banks are exploring whether to team up to issue a joint stablecoin, a type of cryptocurrency, The Wall Street Journal reported on May 22. The conversations have involved companies co-owned by JPMorgan Chase JPM.N, Bank of America BAC.N, Citigroup C.N, Wells Fargo WFC.N and other large commercial banks, the report said, citing people familiar with the matter.

The newspaper said the bank consortium discussions are in early, conceptual stages and could change.

Reuters could not immediately confirm the report. Citigroup, Bank of America and Wells Fargo declined to comment on the WSJ report.

Contributing: ReutersThis article originally appeared on USA TODAY: Crypto investor accused of kidnapping, beating and torturing man in scheme to get Bitcoin password