Two California high school students—ages 16 and 17—were arrested after allegedly posing as delivery workers to force their way into a Scottsdale apartment targeting $66 million in cryptocurrency on January 31, following instructions from anonymous handlers who recruited them through the Signal encrypted messaging app and sent them $1,000 to purchase UPS-style disguises, zip ties, duct tape, and materials to build a 3D-printed gun that police later recovered at the scene.
Crypto theft plot disguised as delivery scheme
Court documents show the teenagers allegedly posed as delivery workers to gain entry into the Scottsdale apartment, a tactic police say is becoming more common in physical crimes tied to cryptocurrency. Investigators reported finding “UPS-style clothing” — Scottsdale Police Department, Evidence Inventory — along with zip ties, duct tape, and a 3D-printed gun abandoned at the scene after the suspects fled.
Police said officers responded to the home around 10:45 a.m. after receiving emergency reports. When they arrived, they heard a woman screaming and saw a man struggling with one of the youths. The suspects fled through the back door when they realized police were entering the property, authorities said.
According to investigators, the crypto theft plot unraveled when the suspects attempted to escape in a blue Subaru but were boxed in at a dead end and arrested. One suspect was identified as a 17-year-old student from San Luis Obispo High School, while the other was a 16-year-old from Pacific Beach High School in Morro Bay.
Police trace crypto theft plot to encrypted contacts
The teenagers told authorities they had been contacted through the Signal encrypted messaging app by individuals they identified only as “8” and “Red” — identifiers cited in court filings — who allegedly provided instructions for the crypto theft plot. According to police summaries, the students claimed they were sent $1,000 to purchase disguises and restraints and were given the address of the Scottsdale home, located roughly 600 miles from where they live.
Investigators said the instructions directed the teens to enter the home and coerce the residents into surrendering digital assets, reinforcing concerns about how encrypted platforms are being used to coordinate crypto theft plot operations remotely. The suspects also claimed they had never met before and were acting under pressure, though police have not publicly detailed the nature of that alleged coercion.
A key detail emerged when the mother of one of the teens reportedly contacted California authorities after accessing phone messages related to the plan. Scottsdale police said they did not receive that information until after the attempted break-in had already occurred.
Charges filed as wider crypto theft plot concerns emerge
Authorities confirmed that the two suspects face multiple charges, including aggravated assault, kidnapping, and second-degree burglary. They were later released on $50,000 bail with ankle monitors. Police did not disclose whether the homeowners were physically injured but confirmed that an adult son inside the house was able to call 911 while hiding.
The investigation has since expanded amid broader concerns about related crypto-linked crimes in Arizona. The home invasion occurred roughly two hours north of Tucson, where investigators are separately searching for Nancy Guthrie, who was last seen on January 31.
According to authorities, evidence at her residence suggested foul play, and a possible ransom note demanded digital assets be sent to a Bitcoin address. TMZ reported that the note included an “or else” — language cited in reporting — and listed two deadlines, adding urgency to fears of a connected crypto theft plot.
While police have not confirmed a direct link between the cases, the timing and digital asset demands have raised questions among investigators about whether organized actors are orchestrating multiple crypto theft plot schemes simultaneously, using intermediaries and younger participants to distance themselves from the crimes.
As law enforcement continues piecing together digital and physical evidence, the arrests highlight how the rise of cryptocurrency has created new risks beyond cyberspace. The Scottsdale case shows that a crypto theft plot can quickly evolve into violent confrontation, leaving families, communities, and authorities grappling with the consequences.