Key Points
- Michael David Coberg has confessed to charges of conspiring to commit extortion and violating civil rights through his association with Adam Iza, known in some circles as the “Crypto Godfather.”
- The illicit activities included violent extortion, a fabricated drug arrest involving planted substances, and the consistent abuse of law enforcement authorities.
- According to the U.S. Attorney’s Office for the Central District of California, Coberg misused his official capacity to interrogate individuals, enable wrongful arrests, and threaten adversaries.
A former deputy from the Los Angeles County Sheriff’s Department, accused of being a strong-arm enforcer for a self-styled “Crypto Godfather,” has entered a guilty plea in a federal court. Experts are calling the scheme “a new low in cryptocurrency related crime.”
Michael David Coberg, a resident of Eastvale, formally admitted guilt on Monday to charges involving conspiracy to commit extortion and conspiring to violate rights, according to an official announcement from the U.S. Attorney’s Office for the Central District of California.
Coberg functioned as a business partner and advisor to Adam Iza, a cryptocurrency entrepreneur accused of fraud, who headed the now-defunct trading platform known as Zort. Iza has been in federal detention since September 2024.
While employed by Iza, the former law enforcement officer utilized his position to interrogate individuals, set up false arrests, and assist in extorting hundreds of thousands of dollars. His personal earnings from this unlawful partnership amounted to at least $20,000 per month, according to the details of his plea agreement.
The pair also formulated plans to launch a business focused on anabolic steroids.
“Law enforcement personnel should not be permitted to use their authority during off-duty hours, as this creates openings for corruption and the intimidation of everyday citizens,” stated Kadan Stadelmann, Chief Technology Officer at Komodo Platform, in conversation with Decrypt.
Coberg’s sentencing is scheduled for February 17, 2026. He could face a maximum sentence of 20 years in federal prison for the extortion charge, and up to 10 years for the conspiracy against rights charge.
Prosecutors allege that Coberg collaborated with Iza to intimidate victims throughout 2021. These actions included forcing a businessman to transfer $127,000 at gunpoint, and staging a false drug arrest of another individual in Paramount.
“Coberg exploited the power of the state to advance fraudulent schemes, which is particularly concerning in this situation,” Stadelmann explained. “The government holds a monopoly on force, and Coberg wrongly assumed that this power extended beyond the limits of his duties as a Sheriff.”
Stadelmann emphasized how the unclear boundaries between public and private interests demonstrate “the insufficient oversight of work performed outside of official duty, where corruption is left unchecked.”
“This scam is a new level of cryptocurrency criminal activity; much worse than your everyday fraudulent token offering, because it involves the use of law enforcement to intimidate victims,” he noted.
Aside from Coberg, fellow deputies Christopher Michael Cadman and David Anthony Rodriguez have also admitted their involvement with Iza. Cadman’s sentencing is scheduled for January 2026, and Rodriguez is due to be sentenced on November 10th.
Eric Chase Saavedra, another former deputy connected to Iza’s payments to LAPD officers, pleaded guilty in February and is currently awaiting sentencing.
Throughout Iza’s fraudulent schemes, he obtained $16 million in cryptocurrency through unlawful practices. Approximately $10 million was spent on lavish goods with his former girlfriend, Iris Ramaya Au, who admitted guilt in March for failing to report $2.6 million in ill-gotten gains.
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