Stuck in Scottsdale, alleged ‘bitcoin boy bandits’ dream of California return

May 10, 2026

As January was ending, two teenagers living on the outskirts of idyllic Pismo Beach – recently named “best small coastal town in America” by USA Today – took a long, overnight drive to Scottsdale.

Three and a half months later, Skylar LaPaille and Jackson Sullivan are stuck in the desert, awaiting trial for a brutal home invasion in which they allegedly demanded millions in bitcoin. Facing multiple felony charges, it could be decades before they feel the sand in their toes, ocean breeze in their faces – or unfettered freedom.

Their attorneys are fighting for at least modified versions of the carefree independence the pair once knew, asking the court to grant their returns to California.

As a summer trial looms for the alleged “bitcoin boy bandits,” one of the two California teens remains in custody. While his Pacific Beach High classmates prepare for graduation, LaPaille earned a GED at a juvenile detention center.

LaPaille’s attorney is arguing the 17-year-old should be released, as he was forced to partake in the crime. Maricopa County Superior Court documents filed thus far echo what Scottsdale Police officers say LaPaille told them.

Sullivan, on the other hand, refused to talk to police when he was arrested.

The attorney for Sullivan, who turned 17 six weeks before the home invasion he allegedly led, begged a judge to allow the boy to return to California.

The release modification motions for the pair have been opposed by the Maricopa County Attorney’s Office – as well as the victims of the terrifying home invasion.

On Jan. 31, Scottsdale Police officers say they chased Sullivan and LaPaille from a Sweetwater Ranch home where the two terrorized the homeowner and his wife.

After a high-speed chase ending in a sushi restaurant parking lot, officers arrested the two teens.

Sullivan refused to answer questions from the officers, telling them to talk to his attorney.

The eager-to-talk Lapaille, 16 at the time, allegedly told officers a mystery figure he knew only as “Red” threatened his family if he did not rob a targeted Scottsdale resident.

The day after they were arrested, a Maricopa County Superior Court judge set bail of $50,000 each for the release of Sullivan and LaPaille.

Sullivan’s mother, who listed her occupation as a technical writer, wired $50,000 to post bail for her son Feb. 2. He was released with an electronic bracelet – but ordered to remain in Maricopa County until his trial, originally slated for June but now scheduled for Oct. 14.

According to a court document regarding his alleged accomplice, “It is hereby ordered that Skylar LaPaille shall be released as indicated and must comply with all release conditions.”

But no one came forward to help Lapaille in the priority condition: “The defendant will deposit with the clerk of the above court the total sum of $50,000.”

The week Lapaille celebrated his 17th birthday at Durango Juvenile Detention Facility, his attorney filed two motions.

On April 23, Nicholas Bustamante of Litwak Law Group requested that LaPaille be deemed “indigent.”

After LaPaille’s arrest, the Phoenix lawyer noted, “attorney fees were gifted by his family.” LaPaille has “no property, assets, inheritance, pensions, annuities” – or income, according to the motion, filed April 23.

The next day, Bustamante filed another plea on LaPaille’s behalf, asking the court “to allow him to be released on his own recognizance, or in the alternative, lower his bond to a secured appearance bond of $20,000 with permission to reside in California with his grandmother.”

According to the motion, “Skylar’s entire family resides in Morro Bay, California.”

The attorney argued, “Review of the initial disclosures warrants revisiting Skylar’s release conditions.”

Bustamante insists the prosecution’s portrait of the crime supports LaPaille’s story:

“Skylar’s involvement was the result of coercion by other individuals rather than voluntary participation. Skylar has consistently maintained that he was directed to the victims’ residence and threatened with harm to his family if he refused to comply.”

The Progress is not publishing the names of the victims, who reside at a four-bedroom home near 96th Street and Cactus Road valued at $1.1 million.

LaPaille and Sullivan allegedly dressed as delivery drivers, ringing the home’s doorbell – then bursting in when the owner answered.

They allegedly pummeled the man, demanding he cough up $66 million in cryptocurrency.

The prosecution’s filings, according to LaPaille’s attorney, “corroborated that (the homeowner) was extorted by unknown individuals between four to eight times in the months preceding the charged incident. This extortion included the use of explicit photographs of (the homeowner) and his spouse being used to try and coerce (the homeowner) into releasing his crypto wallet information.”

The motion to alter his release terms stresses LaPaille has no criminal history and reiterates “the State’s disclosures indicate that Skylar… was significantly influenced by individuals encountered online who also threatened his loved ones.”

No details were provided by the attorney, who hinted much more is to come, as the defense team will be “investigating and addressing the extent of the coercion and duress employed over Skylar as the case proceeds.”

The attorney also is requesting the judge allow LaPaille to return to California.

“If released on the current bond, Skylar would be forced into a shelter or to live on the streets, as his current release prohibits him from leaving Arizona and he has no support within the state. In contrast, his grandparents in California are his sole source of financial support and are prepared to provide him with stable housing and supervision.”

LaPaille’s attorney also appealed to the sympathy of the court:

“Skylar is only 17 years old and currently isolated from his family and support system. Research overwhelmingly demonstrates that placing adolescents in detention, particularly pretrial detention, can cause significant and lasting harm.

“The Annie E. Casey Foundation,” the motion continues, “has documented that juvenile detention disrupts normal development, increases the likelihood of recidivism, and is associated with worsened long-term health outcomes.”

Without admitting his client’s guilt, the lawyer continues, “Skylar fully appreciates the seriousness of this matter. Since his incarceration, Skylar has taken steps toward rehabilitation, including participation in programming, completion of high school, and enrollment in classes at ASU.

“He will continue on this path if he is released.”

Bustamante attached to his motion a photo of LaPaille receiving a high school diploma through the ASU program, as well as an email from a program representative.

LaPaille has moved on to college courses, according to the email: “He completed his first course, PSY 101 Introduction to Psychology, with an A and has already started a second course, FIN 294 Fundamentals of Personal Finance.”

While at the juvenile detention center, LaPaille also was awarded a certificate for “owning my past actions.”

Victims ‘traumatized’

In its response, the County Attorney’s Office strenuously opposed the request to lower LaPaille’s bail and allow the accused to return to California.

“The bail is not excessive,” Deputy County Attorney Magnus Eriksson insisted.

And, Eriksson stated, LaPaille’s attorney “has not alleged the existence of material facts not previously presented to the court that determined (LaPaille’s) conditions of release.”

The prosecution highlighted that the victims agree the modifications should be rejected.

“The male victim reports that he is still in pain and his family is traumatized and watching their back with every little thing they do.”

The Scottsdale homeowner said he did not want LaPaille to be released – nor either of them allowed to leave the state “and connect with the third person involved.

“The male victim states that there is a $66-million price tag on his back.”

According to the prosecution document, at 10:44 a.m. Jan. 31, Scottsdale Police officers responded to a 911 call “and found a female with her hands bound by black tape and black tape around her head, covering her mouth. A male was found bound at the ankles on the ground in the house.”

The male victim told police intruders attacked him and demanded “access to his crypto wallet.”

The homeowner told police the two invaders “punched him in the stomach and one slammed his head and he had head, back, and foot (pain).”

One of the bandits called “a third male whom they put on speaker phone. The man on speaker phone demanded money and called them liars.”

The homeowner later told police “he believed this incident is related to a bitcoin issue he had several years ago. He said he invested in a crypto mining company years ago and was defrauded, losing a significant investment.”

The woman’s adult son was in the back of the house. She told police she yelled out in Chinese that they were being assaulted.

“The subjects then taped (the mother’s) mouth with duct tape.

“The son called 911.”

Responding within five minutes, officers chased the intruders. After running from the house, the two allegedly jumped in a blue Subaru Outback.

When officers attempted to pull the car over, “The vehicle accelerated away, making evasive maneuvers and did not yield.”

At times driving on the wrong side of the road and “nearly causing traffic collisions,” the Subaru raced along Frank Lloyd Wright Boulevard.

The Loop 101 was in sight as they neared Pima Road, but the alleged bandits apparently made a wrong turn, ending up at a dead end in front of Yen Sushi.

Officers put the teenagers in handcuffs.

“Skylar said he met Jackson a few days prior and they were both from California and drove to Arizona together in Jackson’s blue Subaru Outback, arriving around (5 a.m.),” according to the prosecution summary.

The arrest report states LaPaille said Sulivan asked “if he wanted to make $66 million in cryptocurrency by going to Scottsdale, tie people up, and get them to give their cryptocurrency.”

According to the prosecution’s response to the motion to reduce bail, “Skylar said he was operating under instructions to steal cryptocurrency from (the Scottsdale homeowner) at his residence. Skylar said after arriving and having breakfast, the license plate on the Subaru was switched with a different Subaru that was parked in an unknown residence driveway in Scottsdale.

“Skylar claimed that his IP address was hacked by an unknown user by the name of ‘Red’ and another named ‘8.’ Red/8 told Skylar to complete this task, or his grandparents and other family members would be harmed.

“Skylar said he did this to protect his family. When asked if Sklyar kept screenshots of this conversation, he explained he had no proof of the allegations and communicated with Red on Signal (an app that deletes messages). Skylar said Red told him to dress up as UPS drivers, get the door open, get them to the ground, tie them up, get the ledger for where they store the crypto and send it to Red/8 through a bitcoin address.”

LaPaille said the two prepared for their trip by buying delivery uniforms, a dolly and other items.

When they approached the Windrose Lane home, “They used the dolly and the cardboard box with their uniforms to make contact at the front door.”

LaPaille confirmed the story of forcing their way in and taping up the victims but “claimed they never assaulted them.”

When an officer asked the talkative LaPaille why he was shirtless, the teenager answered, “Well, I was in a UPS shirt,” according to the court document.

“In another spontaneous statement, Sklyar told the officer, ‘See the cut on my face? I did that jumping over their back wall,’ and ‘Who called? Was it the guy we had inside or someone saw? … You guys are good, I saw no cops in the area until I saw you through the front door when you arrived.’”

The prosecutor concludes his 14-page response:

“For the foregoing reasons, the State opposes (LaPaille’s) motion to reduce bond and allow him to return to California and requests that the court deny the motion.”

Sullivan’s travels

According to the arrest report, as the break-in was taking place, Sullivan’s mother called police in California “because she had found text messages on his phone in regard to dressing up like UPS, committing a burglary, and splitting the proceeds of the crime. An address in Scottsdale, AZ, down the street from the actual incident location was provided in the text messages.”

 That California police department “then called Scottsdale PD to notify them of the possible burglary,” according to the report.

“SPD received that information after the incident had occurred.”

After his mother posted bond, Sullivan is relatively free – albeit wearing a monitoring device – and attending a Valley high school.

Yet Sullivan apparently pines for a return to the Pismo Beach area.

“Mr. Sullivan respectfully requests that the Court allow him to reside in California while this case is pending,” his attorney wrote.

According to the March 5 motion to modify his release conditions, “His current release conditions prohibit him from leaving Maricopa County. This requirement places a significant burden on Mr. Sullivan and his parents, as they are paying to live in a hotel in the Phoenix area.

“Mr. Sullivan needs to return to California so he can continue with his junior year and graduate from high school.”

Sullivan is a junior attending San Luis Obispo High School “in good academic standing,” according to the motion, “and has no prior criminal history.

“Since his release from custody, he has begun seeing a therapist.”

The release conditions have placed a great burden on the family, according to Sullivan’s lawyer.

“His parents have another child living in San Luis Obispo and must live separately to care for both children right now.”

And, the attorney pledges, Sullivan’s parents “are employed and responsible professionals who will act as custodians and ensure that Mr. Sullivan complies with all pretrial release conditions and is present in person for all future hearings.”

As in the case of his alleged partner’s bond reduction, the prosecution opposes allowing Sullivan to leave the state.

“Allowing the defendant to return to California,” Eriksson wrote, in response to Sullivan’s motion, “makes the court-ordered electronic monitoring impossible which increases the risk that the defendant fails to appear for future hearings, and increases the risk of witness intimidation and tampering.”

 Eriksson also states, “The victims are still terrified by the defendants’ violent and deceitful behavior.”

The prosecutor insists age should not be used for leniency.

“Permission to return to California is not warranted, nor fair to the victims due to there being no practical way to electronically monitor (Sullivan) while he is not in Arizona.”

The deputy county attorney asserted Sullivan “chose to travel to Arizona to commit the offenses, and he will answer the accusations in Arizona … “While the defendant is a very young man with no recorded criminal history, his actions in this case demonstrate that he poses a danger to the community and even more so if there is no possibility to monitor his actions.”

Eriksson noted Sullivan expressed he “wishes to finish school. To that end, he has laudably enrolled in a school in Arizona, and he can continue to do that.”

After a change from his original attorney, Sullivan is now represented by the Rosenstein Law Group, a Scottsdale firm that took over his case April 9.

Rulings

On April 27, Maricopa County Superior Court Judge Jeffrey A. Rueter granted the request that LaPaille be considered indigent.

As for LaPaille’s bond reduction plea and requests the pair  be able to return to their homeland, no decision has been made as of this edition’s deadline.

Oral arguments on changing the bond requirements are scheduled for Wednesday, May 13.

The two teens – who are being charged as adults – were in court for a preliminary trial conference Monday, May 4.

According to the San Luis Obispo Tribune, Sullivan was a student at San Luis Obispo High School; LaPaille attended Pacific Beach High School.

Both schools are about a 15-mile drive from Pismo Beach – and a 10-hour drive to Scottsdale.

Charges against the two include: burglary in the second degree, a class 3 felony; two counts of aggravated assault, class 6 felonies; two counts of kidnapping, class 2 felonies; possession of burglary tools, a class 6 felony; and fraudulent schemes and artifices, a class 2 felony.

For those without prior offenses, the sentencing range for class 2 felonies is seven to 21 years. Class 3 felonies have sentencing guidelines of five to 15 years. Class 6 felonies have a sentencing range of 1.5 to three years, for first offenders.

Though plea bargains with reduced sentences are possible, if convicted of most of the charges without a deal, the two California teenagers could be old men before they return to the beach.

SPD

The Progress asked the Scottsdale Police Department if it is working with any other law enforcement agencies on the “bitcoin boy bandits” case – and if the alleged third suspect has been identified.

“This case is still an ongoing investigation,” said Sgt. Alison Sempsis of the SPD. “We have no details to provide other than what we already put out.”