Michael Coberg, a former deputy, was convicted for his role in helping Adam Iza, known as the 'Crypto Godfather,' extort victims through sham operations.
Michael Coberg, a former Los Angeles County Sheriff's Department deputy, was sentenced to 63 months in prison on Monday for his involvement in extortion schemes linked to Adam Iza, a crypto trading platform founder nicknamed the 'Crypto Godfather.' Coberg pleaded guilty in September to charges of conspiracy to commit extortion and conspiracy against rights, according to the Los Angeles U.S. Attorney's office.
Details of the Extortion Scheme
In October 2021, Coberg assisted Iza in extorting a victim identified as 'L.A.,' who was in a financial dispute with Iza. Coberg helped transport L.A. to Iza's house, where Iza recorded a video of L.A. transferring $127,000 to Iza's bank account while Coberg stood guard. Prosecutors stated that Coberg also took Iza and L.A. to a shooting range, where Iza held L.A. at gunpoint to demand the money transfer.
Coberg was paid at least $20,000 a month for providing security services to Iza, the founder of the crypto platform Zort. Iza had previously pleaded guilty in January 2025 to multiple extortion charges and is awaiting his own sentencing.
Additionally, Coberg conspired with Iza and others to stage a fake drug bust targeting another victim, identified as 'R.C.,' who was in a dispute with Iza. R.C. was lured to Los Angeles by an ex-girlfriend, picked up at the airport, driven to obtain drugs, and then arrested by a Sheriff's Department deputy whom Coberg had tipped off.
Broader Involvement and Sentencing
Prosecutors noted that Coberg abused his authority as a law enforcement officer for personal gain, specifically greed, as outlined in their sentencing memorandum. This case also involved Christopher Cadman, another former Sheriff's Department deputy, who pleaded guilty in August to related charges of helping Iza hold R.C. at gunpoint to extort $25,000.
The sentencing included an order for Coberg to pay $127,000 in restitution to the victims. This incident highlights ongoing issues in the crypto industry, where figures like Iza have faced legal scrutiny for fraudulent activities, though specific details on Zort's operations were not detailed in court documents.
Related cases include a former LAPD officer convicted of kidnapping in a separate crypto robbery, showing patterns of law enforcement corruption tied to cryptocurrency crimes. Cointelegraph reported these events based on official statements from the U.S. Attorney's office, emphasizing the need for accountability in both crypto and policing sectors.
