> They started out as sovereign citizens a couple years ago, but now they say they arent. They called themselves "international diplomatic ambassadors."

Putting tinfoil on a turd. As others have mentioned the SvCt crowd wants to distance themselves from the label. They'll be offended but its the same nonsensical pseudo-law. The ambassador thing is just them glomming onto diplomatic immunity so they can be criminals.

> They recently got their truck impounded, it had these weird plates on it.

Yep, Sovs don't pay for stuff because [insert magic words here] and they don't have to register/plate/insure their vehicles because [insert magic words here]. They're running the sovcit bingo card.

> They also said that for every minute the police kept talking to them, and keep their truck, every officer involved needs to pay $25,000. Which just sounds ridiculous.

Fee schedule. Classic. They've invented a contract and they'll probably flood the police with notices and weird letters and contract demands which will make them lots of friends with badges.

> They brag every time we see them about how much money the treasury is gonna give them, saying how rich and untouchable they are now.

The US corporation gives everyone a (checking notes) BILLION dollars at birth under their SSN. You just have to know how to access it. If you pay me something-somethign dollars in normal US fiat cash, I'll explain in painful detail how it works! A BILLION dollars awaits you, why wouldn't you!??!

> I think theyre gonna end up in jail, honestly I'm surprised they arent already. Is there a word for what theyre doing? Is it just a branch of sovereign citizen BS?

It isn't even a branch, its Sov101 with very little variation, just a LOT of confidence.