I suspect this scam extends far beyond Connecticut. However, an article by Rich Scinto in the Farmington (Connecticut) Patch describes the problem within his community. Local residents have received threatening and disturbing letters demanding Bitcoins in exchange for not killing a family member.
Farmington Police Lt. Colin Ryan urged residents who receive such letters not to follow the instructions and instead contact police.
The article is available at http://patch.com/connecticut/farmington/scammers-demand-bitcoins-exchange-releasing-hostages-0.