Crypto kidnap and torture suspects John Woeltz and William Duplessie at the moment are indicted on a number of felony counts, and prosecutors are addressing TMZ’s wild movies displaying their alleged sufferer partying and having intercourse … calling it an elaborate smoke display screen.

In a Manhattan courtroom Wednesday, crypto bros Woeltz and Duplessie have been accused of staging these kinky movies to make it look like they weren’t holding Italian businessman Michael Carturan captive.

Prosecutors say the duo organized for Carturan to be photographed in these social gathering pics and intercourse scenes to promote the lie that he was simply residing it up.

Additionally they describe Carturan as mainly being beneath home arrest — solely allowed out with a guard. As for Carturan’s escape … prosecutors say Woeltz advised him to switch the cash, and when he went to seize a tool to finish the transaction … he seized the second to flee.

Woeltz and Duplessie at the moment are charged with kidnapping, assault, coercion, tried grand larceny, and felony possession of a weapon.

ICYMI… the suspects allegedly lured Carturan to their rented Manhattan townhouse and stored him trapped there for over 17 days, making an attempt to pressure him to cough up his Bitcoin password.