Former LA Deputy Gets 63 Months for Assisting Crypto Boss in Armed Extortion Ring

Key Takeaways

• Michael Coberg, ex-Los Angeles Sheriff’s deputy, received a 63-month prison sentence
• He received $20,000 monthly payments to serve as security for cryptocurrency platform founder Adam Iza
• Adam Iza, self-styled “Crypto Godfather,” coerced a victim into transferring $127,000 under armed threat
• Coberg orchestrated a fraudulent drug arrest targeting another victim flown in from Miami
• Adam Iza entered a guilty plea and awaits his own sentencing hearing

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A former member of the Los Angeles County Sheriff’s Department has received a federal prison sentence for exploiting his law enforcement authority to assist a cryptocurrency business owner in extorting competitors and orchestrating a fraudulent arrest.

On Monday, Michael Coberg, age 44, received a 63-month federal prison term. The court additionally mandated he pay $127,000 in victim restitution.

In September, Coberg entered a guilty plea to charges of conspiracy to commit extortion and conspiracy against rights.

Federal prosecutors revealed that Coberg collected a minimum of $20,000 monthly to serve as a security contractor for Adam Iza, who established the cryptocurrency trading platform Zort. Iza styled himself as the “Crypto Godfather.”

Iza has remained in federal detention since September 2024.

Armed Coercion and Financial Theft

In October 2021, Coberg participated in retrieving an individual — referenced in court documents as “L.A.” — whose business associate had a financial conflict with Iza.

Coberg transported this individual to Iza’s residence, where Iza filmed the victim transferring $127,000 into his bank account as Coberg provided armed supervision. Authorities confiscated the victim’s passport prior to his release.

During another incident, Coberg accompanied Iza in taking the victim to a firearms range. Federal prosecutors stated that Iza threatened the individual with a weapon and demanded monetary transfers.

In an additional case, a person designated as “R.C.” had previously been threatened at gunpoint by Iza alongside two other deputies and compelled to transfer $25,000.

Coberg and accomplices subsequently coordinated with R.C.’s former romantic partner to contact and persuade R.C. to travel from Miami to Los Angeles based on fabricated reasons.

Fraudulent Drug Sting Operation

Following R.C.’s arrival, they received instructions to acquire narcotics. Coberg alerted a fellow deputy, who conducted a traffic stop and executed the arrest.

Federal prosecutors characterized this as a fabricated drug operation engineered to punish Iza’s business competitor.

Christopher Cadman, another former deputy, had previously entered a guilty plea in August for his participation in assisting Iza.

Law enforcement officials indicated that Iza operated an extensive network that recruited off-duty police officers.

Prosecutors alleged the organization engaged in a criminal enterprise that at one stage targeted the theft of up to $100 million in cryptocurrency holdings.

In January 2025, Adam Iza pleaded guilty to numerous charges including fraud and conspiracy against rights. His sentencing date has not yet been scheduled.

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