An alleged plot to seize $66 million in bitcoin was reportedly directed in real time by an unidentified figure calling himself “Red,” prosecutors said during a March 17 hearing in Maricopa County.
According to court records, two California teenagers — 17-year-old Jackson Sullivan and 16-year-old Skylar LaPaille — traveled roughly 600 miles from San Luis Obispo to Scottsdale, Arizona, and carried out a violent home invasion on the morning of January 30. Prosecutors say an unknown third party remained on the phone with the teens throughout the attack, directing their moves.
What prosecutors say happened
- The teens told investigators they were communicating with “Red” and another person known as “8” via the encrypted messaging app Signal. They also said the pair provided $1,000 to buy supplies for the operation.
- Sullivan and LaPaille arrived near Windrose Drive (around 98th Street) dressed as delivery drivers, carrying a fake package and a dolly. When the homeowner answered, the teens forced their way inside.
- The couple was restrained with duct tape and repeatedly beaten while the intruders demanded access to cryptocurrency wallets. The homeowner later told the court he suffered a concussion and a broken rib.
- The couple’s adult son hid during the assault and called 911. Police reached the scene before the suspects had departed.
- The teenagers fled in a vehicle with stolen plates and at one point drove the wrong way into oncoming traffic during a pursuit. They were arrested just after 11:30 a.m. on January 31.
Evidence and charges
- Items left at the scene included duct tape, zip ties, a 3D‑printed unloaded gun and a burner phone.
- Both teens now face nine felony counts, including aggravated assault, kidnapping and second‑degree burglary.
- Sullivan was released on a $50,000 cash‑only bond and is wearing an electronic monitor. LaPaille’s bond was also set at $50,000; court records did not make clear whether it was posted.
Defense and ongoing questions
- Attorneys for the teens say the pair were manipulated and targeted online; Sullivan’s lawyer told the court his client’s parents were unaware of the plot.
- The teens have reportedly told investigators they were extorted into carrying out the crime.
- An FBI spokesperson confirmed the bureau is aware of the investigation but is not currently involved.
The most persistent mystery in the case is “Red.” Prosecutors acknowledged in open court they do not know his identity or current whereabouts, and no charges have been filed against him.
For crypto observers, the case highlights how high‑value holdings can be the focal point for violent crime, and how encrypted messaging, burner phones and social manipulation can intersect with attacks aimed at accessing private keys or wallet access.
Image and chart: Unsplash, TradingView.
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