Crypto Investors Targeted in Coordinated Violent Crimes Across NYC and Seoul

Authorities in two major world cities are grappling with a sharp rise in violent crimes linked to cryptocurrency transactions, following the arrest of suspects in separate incidents in New York City and Seoul. In South Korea, police detained a Russian national accused of attempting to rob $730,000 during a staged crypto deal at a hotel, while in the United States, a third suspect has surrendered in the kidnapping and torture case of an Italian tourist held for weeks in a Manhattan townhouse. 

Fake Crypto Deal Turns Violent: Russian National Arrested in South Korea for Attempted Hotel Robbery

South Korean law enforcement has arrested a Russian national suspected of orchestrating a violent attempted robbery under the guise of a cryptocurrency transaction. The incident, which took place in a Seoul hotel room on May 21, involved the attempted theft of 1 billion won (approximately $730,000) from a group of local investors, authorities confirmed on May 27.

According to a report by JoongAng Daily, the Gangseo Police Precinct arrested a man in his 20s in the port city of Busan. He now faces serious charges including assault and attempted robbery. Two additional suspects, believed to have been part of the coordinated operation, reportedly fled South Korea before police could prevent their departure.

Investigators say the crime was meticulously premeditated. The three Russian nationals posed as legitimate participants in a peer-to-peer cryptocurrency deal and invited ten Korean investors to a hotel in the Gangseo District of Seoul. After splitting the group, the perpetrators brought two victims up to a hotel room while the others waited in the lobby.

Once inside, the suspects ambushed the two men, assaulting them with a replica handgun and a telescopic baton. The attackers, wearing protective vests, tied the victims’ hands with cable ties in an apparent effort to subdue them and steal the cash brought for the supposed transaction.

However, the plan unraveled when one of the victims managed to break free and alert others in the lobby. Police were soon dispatched to the scene, where they found one injured man bleeding and a trove of suspicious equipment in the hotel room.

The police report detailed the items seized from the hotel room, including a realistic-looking fake firearm, multiple batons, bulletproof-style vests, cable ties, and a cash counter. Investigators believe the operation was not only carefully coordinated but also potentially part of a broader pattern of targeting crypto investors.

Authorities quickly filed a motion on the morning of May 22 to prevent the suspects from fleeing the country. However, two had already left South Korea. ”We have requested assistance from Interpol to track down the suspects who fled overseas,” a police official told local media. Meanwhile, prosecutors are preparing to request a pretrial detention warrant for the captured suspect.

Crypto Crime on the Rise

This alarming case is part of a growing trend of crypto-related crimes involving violence, extortion, and even torture.

On May 13, the family of Pierre Noizat, CEO of the French crypto exchange Paymium, was reportedly targeted in an attempted kidnapping plot. Authorities believe the attackers were after crypto credentials or holdings.

Paymium CEO family kidnapping attempt (Source: Daily Star)

The surge in crypto crimes has spurred a corresponding demand for enhanced personal security. Infinite Risks International, a private security firm, reported a notable increase in bodyguard and protection service requests from crypto founders, venture capitalists, and high-net-worth investors as of mid-May.

While crypto itself remains a legal and transformative financial technology, its decentralized nature continues to attract bad actors seeking fast access to large, liquid assets.

In response, industry leaders are calling for increased education, better vetting of P2P counterparties, and closer cooperation between international agencies. Until stronger safeguards are in place, the burden of due diligence will remain on individual investors, many of whom now find themselves in the crosshairs of criminal opportunists.

A Global Problem Requiring Global Solutions

As digital assets become more mainstream, the risk of physical violence accompanying crypto deals, especially large, in-person cash transactions, is growing. Authorities around the world are beginning to recognize that crypto crime is not merely cybercrime; it is often violent, organized, and transnational.

Interpol’s involvement in tracking the two suspects abroad may mark a turning point for law enforcement cooperation in tackling crypto-related crime. For South Korea, this case adds to a growing list of incidents reinforcing the need for robust KYC procedures, real-time monitoring of large transfers, and secure transaction environments.

Third Suspect Surrenders in Shocking NYC Crypto Kidnapping and Torture Case

Meanwhile, in another disturbing case that has gripped both the crypto and law enforcement communities, a third suspect linked to the violent kidnapping and torture of an Italian tourist in Manhattan has surrendered to authorities. The suspect, 33-year-old William Duplessie, turned himself in to the New York Police Department (NYPD) on May 27 after several days of negotiations, according to NYPD Commissioner Jessica Tisch.

Duplessie is now facing charges of kidnapping and false imprisonment of an associate for his alleged role in holding 28-year-old Italian national Michael Valentino Teofrasto hostage in a SoHo townhouse. The case is one of the most severe examples to date of physical violence tied to crypto extortion attempts.

Michael Valentino Teofrasto around police (Source: MSN)

According to a New York Times report, Duplessie and previously arrested suspect John Woeltz both had ties to a local crypto hedge fund. While the fund has not been named publicly, investigators believe the connection may have played a key role in the motive behind the crime.

Teofrasto, who had traveled to New York as a tourist, was kidnapped and held against his will in a luxury townhome in the city’s upscale SoHo neighborhood. Over the course of several weeks, he endured brutal physical abuse from his captors, who were reportedly attempting to force him to hand over access to his crypto holdings.

The suspects allegedly bound Teofrasto, stole his phone and passport, and subjected him to physical beatings—including electrocution with a Taser. In one of the most harrowing details, the captors reportedly submerged the victim’s feet in water while tasing him in an effort to force him to reveal private keys to his crypto wallets. He was also pistol-whipped and denied basic freedoms while being detained under false imprisonment.

Despite the sustained torture, Teofrasto eventually managed to escape and flagged down a police officer on the street to report the incident. His testimony led to the swift arrest of John Woeltz, who was charged with kidnapping for ransom and three other felony charges. Woeltz remains in custody without bail and is scheduled to appear in court for a hearing on May 28.

NYPD officials said Duplessie’s surrender was the result of multiple days of negotiations. While they did not disclose the specifics of the talks, law enforcement sources confirmed that the suspect had been under surveillance since Woeltz’s arrest.

Authorities continue to investigate the case and are examining whether others tied to the hedge fund or the suspects may have been involved in the operation. It remains unclear if the stolen assets or wallet credentials were ever successfully accessed by the kidnappers.

Security Wake-Up Call for the Crypto Industry

The kidnapping has sent shockwaves through the crypto community. Industry leaders and cybersecurity experts are urging investors to avoid disclosing their crypto wealth publicly and to consider enhanced security measures when traveling or meeting with unknown parties. In an industry built on decentralization and anonymity, these incidents are raising new questions about how to protect digital wealth in the physical world.

While the courts will now determine the fates of Woeltz and Duplessie, the broader message is clear: as crypto assets grow in value and visibility, so too do the threats against their holders. Law enforcement agencies around the world are being called to adapt, collaborate, and respond to a new form of digital-era organized crime—one that’s very real, and very dangerous.