Two Teens Arrested in $66 Million Crypto Theft Attempt

Authorities say the teens were extorted by mysterious figures 'Red' and '8' to carry out the failed heist in Scottsdale, Arizona.

Published on Feb. 8, 2026

Got story updates? Submit your updates here. ›

Two teenagers, Jackson Sullivan and Skylar Lapaille, have been arrested and charged in connection with a failed plan to steal $66 million worth of cryptocurrency from a home in Scottsdale, Arizona. Investigators believe the teens were extorted by two individuals known only as 'Red' and '8' who communicated with them over the secure messaging app Signal and provided them with the target's information and $1,000 for materials. The teens allegedly posed as delivery drivers to gain access to the home before restraining the victims with duct tape, but were ultimately thwarted and arrested.

Why it matters

This case highlights the growing threat of physical crypto theft, known as '$5 wrench attacks,' which have become an increasingly prevalent issue in recent years. Data breaches exposing the personal information of cryptocurrency holders have made them vulnerable targets for these types of crimes. The story also echoes a previous $11 million crypto theft in San Francisco that involved a similar ruse of posing as delivery drivers.

The details

According to authorities, Sullivan and Lapaille traveled over 600 miles from California to Scottsdale to carry out the attempted heist. The teens are said to have collected materials including a 3D-printed gun, though it was unclear if the weapon was functional. The plot was ultimately foiled when one of the teens' mothers discovered related messages on her son's phone and contacted the police. A person inside the home during the invasion was also able to alert law enforcement.

  • The alleged attempted theft occurred in February 2026.
  • The two teens were arrested and charged in connection with the incident.

The players

Jackson Sullivan

One of the two teenagers arrested and charged in the failed $66 million crypto theft attempt in Scottsdale, Arizona.

Skylar Lapaille

The second teenager arrested and charged in the failed $66 million crypto theft attempt in Scottsdale, Arizona.

Red

One of the two mysterious individuals who allegedly extorted Sullivan and Lapaille into attempting the crypto theft, communicating with them over the Signal messaging app.

8

The second of the two mysterious individuals who allegedly extorted Sullivan and Lapaille into attempting the crypto theft, communicating with them over the Signal messaging app.

Got photos? Submit your photos here. ›

What they’re saying

“If you are a doxxed bitcoiner or crypto person in France. LEAVE. GET OUT. Wrench attacks everyday. My friends are affected.”

— Joe Nakamoto (Twitter)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Jackson Sullivan and Skylar Lapaille out on bail.

The takeaway

This case highlights the growing threat of physical crypto theft, known as '$5 wrench attacks,' which have become an increasingly prevalent issue as data breaches expose the personal information of cryptocurrency holders. It underscores the need for improved security measures and education to protect crypto investors from these types of targeted crimes.