We don't have enough info, but it sounds like one guy holding hostage a domain and the other desperate enough to use a gun... and they knew each other. No details, but that seems possible.
"I want to sell!" The other saying "Not enough yet!"
Or could be a freakin' bandit (as phranque suggests).
Regardless, what domain name is worth going to jail? or, How Much Money Is Involved? for such stupidity to be attempted?
Then I look at the crime reports in my city were folks perish over $2 bucks or less... we live in crazy times.