Ex-Cop Jailed for Helping Crypto ‘Godfather’ Extort Rivals in Gun-Fueled Scheme

TLDR

• Former LA Sheriff’s deputy Michael Coberg sentenced to 63 months in prison
• Coberg was paid $20,000/month to provide security for crypto founder Adam Iza
• Iza, known as the “Crypto Godfather,” forced a victim to transfer $127,000 at gunpoint
• Coberg helped engineer a fake drug arrest of a separate victim lured from Miami
• Iza has pleaded guilty and is still awaiting his own sentencing

A former Los Angeles County Sheriff’s deputy has been sent to prison for using his law enforcement badge to help a crypto entrepreneur extort rivals and arrange a false arrest.

Michael Coberg, 44, was sentenced to 63 months in federal prison on Monday. He was also ordered to pay $127,000 in restitution.

Coberg had pleaded guilty in September to conspiracy to commit extortion and conspiracy against rights.

Prosecutors said Coberg was paid at least $20,000 a month to work as a security operative for Adam Iza, the founder of crypto trading platform Zort. Iza referred to himself as the “Crypto Godfather.”

Iza has been in federal custody since September 2024.

The Extortion Scheme

In October 2021, Coberg helped pick up a man — identified only as “L.A.” — who had a business partner in a financial dispute with Iza.

Coberg brought the man to Iza’s house, where Iza recorded a video of the victim transferring $127,000 to his bank account while Coberg stood guard. The victim’s passport was taken before he was released.

At a separate point, Coberg and Iza took the victim to a shooting range. Prosecutors said Iza held the man at gunpoint and demanded he transfer money.

In a different case, a victim identified as “R.C.” had earlier been held at gunpoint by Iza and two other deputies and forced to transfer $25,000.

Coberg and others later arranged for R.C.’s ex-girlfriend to call and convince R.C. to fly from Miami to Los Angeles under false pretenses.

The Staged Arrest

Once R.C. arrived, they were directed to obtain drugs. Coberg tipped off a fellow deputy, who pulled R.C. over and made the arrest.

Prosecutors described this as a sham drug sting designed to retaliate against Iza’s rival.

A second former deputy, Christopher Cadman, had already pleaded guilty in August for his own role in helping Iza.

Authorities have said Iza ran a wider network that included off-duty law enforcement officers.

Prosecutors alleged the group was involved in a scheme that at one point aimed to steal up to $100 million in crypto assets.

Adam Iza pleaded guilty in January 2025 to multiple charges including fraud and conspiracy against rights. He is currently awaiting sentencing.

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