Michael David Coberg of Eastvale, a former deputy for the Los Angeles County Sheriff’s Department, has pleaded guilty to federal charges in a racketeering case related to Adam Iza, who claimed to be the “Crypto Godfather.”
According to prosecutors, Coberg admitted to conspiracy to commit extortion and conspiracy against rights, crimes that involved the use of his position of authority as a law enforcement officer to facilitate Iza’s schemes and scams.
Coberg provided “muscle and advice” to Iza, who ran the now-defunct crypto trading platform, Zort, in return for at least $20,000 per month to protect and facilitate Iza’s scams.
This case highlights how criminal misuse of police authority can amplify the scale and severity of a financial crime.
Extortion, Intimidation, and Abuse of Power
Court documents reveal that in 2021, Coberg repeatedly abused his badge to intimidate victims and get fortune and funds towards Iza.
In one instance, Coberg held a businessman at gunpoint and forced him to send Iza $127,000 directly. In another case, he created a fake drug arrest as emotional pressure for another victim.
Each one of Coberg’s abuses was a stark reminder of the dangerous lack of oversight for off-duty police work.
Kadan Stadelmann, CTO of the Komodo platform, added that Coberg’s actions reflected a “next level of crypto malfeasance” where the abuse of state power amplified the impacts of a fraud scheme beyond typical scams in the digital asset world.
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A Broader Network of Corruption Exposed
Coberg’s admission of guilt is just a part of a wider federal crackdown on a network of cops connected to Iza’s corruption ring.
Deputies Christopher Michael Cadman and David Anthony Rodriguez have also pleaded guilty, along with another deputy, Eric Chase Saavedra, who entered a guilty plea earlier this year for related charges.
All these deputies exploited their positions of trust to engage in fake raids, intimidate civilians, and protect Iza’s crypto operations from transparency.
Federal prosecutors explain that the schemes, while contributing to the victims’ losses, also damaged public trust in law enforcement. Coberg could face a maximum sentence of 30 years in prison. Sentencing is set for February 17, 2026.
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The Rise and Fall of the “Crypto Godfather”
Adam Iza, the defendant in this case, is accused of running a multi-million dollar scheme through cryptocurrency fraud, resulting in $16 million in unlawful profits.
Court filings indicate that Iza spent approximately $10 million on luxury items, travel, and other luxuries, sometimes assisted by his ex-girlfriend, Iris Ramaya Au.
Earlier this year, Au admitted to conspiring not to report $2.6 million in fraudulently obtained funds, for which she could receive up to three years.
According to federal authorities, Iza was a “crypto mogul” who used both financial fraudulent schemes and corrupt law enforcement contacts to engage in his deceitful conduct. Iza has been in federal custody since September 2024.
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Related Crypto Scandals Point to Systemic Failures
This case is one among an increasing number of crypto-linked scandals involving law enforcement and financial fraud.
On March 5, Iza’s former girlfriend, Iris Ramaya Au, pleaded guilty to a tax fraud scheme involving $2.6 million of hidden proceeds, according to UnoCrypto.
Subsequently, on July 15th, we reported that the prosecution revealed deputies affiliated with Iza conducted phony raids and accepted bribes to guard his fraudulent cryptocurrency firm, Zort.
All of these details expose the systemic failures of oversight in cryptocurrency regulation and law enforcement that permitted Iza’s network to flourish.
As the investigation under the prosecution presses on, warning additional indictments may follow, given the continuing investigation of the interfusion of crypto fraud and abuse of public power.
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