Sex Offender Arrested in Colorado Is Possible Suspect in Indiana Girls' Murder

The registered sex offender allegedly threatened a several people with a hatchet.

Investigators who've been searching for the killer of two Indiana teens brutally murdered while hiking may have a lead all the way in Colorado

Police in El Paso County arrested a man there Monday after he allegedly threatened several people with a hatchet near a mountain trail where a man is believed to have been murdered two weeks ago, WLS reports. 

Read: Two Beloved High School Students Found Murdered Behind Supermarket

The possible suspect is a registered sex offender named Daniel Nations. Inside Edition has learned the 31-year-old was previously living in Indianapolis, some 70 miles from where 14-year-old Liberty "Libby" German and her best friend, Abigail Williams, were slain in February.

Abby, 13, and Libby, 14, were found dead on Valentine's Day, one day after they were reported missing by family members.

Chilling evidence was later found by authorities on Libby's phone. A grainy image and haunting audio of a man saying "down the hill" were recorded moments before they were killed.

A source familiar with the investigation described the full recording as "the stuff of nightmares."

Read: Police Release Sketch of Suspect, 5 Months After Murder of Indiana Teens

Months later, a sketch was released by Indiana and federal authorities of a suspect wanted in connection with the slayings.

Indiana State Police said they have had over 1,000 reports of people who look like the sketch and they are looking into the situation in Colorado.

Watch: Cops Search Property Where Bodies of Teen Indiana Hikers Were Found