Key Highlights

  • Former L.A. deputy Michael Coberg jailed for over five years for helping a crypto entrepreneur coerce and intimidate victims.

  • ​​Coberg admitted to using his badge to intimidate victims, stage a false arrest, and help extort at least $127,000, while being paid at least $20,000 a month by Iza.

  • Authorities estimate Iza’s broader crypto operation netted roughly $16 million, much of which was used for lavish personal expenses.

A former Los Angeles County sheriff’s deputy has been sentenced to 63 months in federal prison for participating in a scheme to intimidate and extort victims on behalf of a Southern California cryptocurrency entrepreneur.

Michael David Coberg, 44, admitted he collaborated with Adam Iza, who called himself the “Crypto Godfather,” targeting individuals involved in financial disputes with Iza’s ventures, including the defunct trading platform Zort. Coberg was also ordered to pay $127,000 in restitution.

Authorities said Coberg used his position as a deputy to threaten victims, stage false arrests, and pressure people into paying Iza, all while receiving at least $20,000 per month for his services. One notable case involved luring a victim to Iza’s Bel Air residence under the guise of resolving a dispute; Iza displayed firearms while Coberg, posing as an on-duty officer, coerced the victim into a $127,000 bank transfer. In another instance, Coberg helped orchestrate a fake traffic stop and drug arrest to intimidate a victim who traveled from Miami.

Federal prosecutors estimate Iza’s broader operation pulled in roughly $16 million in cryptocurrency through fraudulent schemes and coercion, with around $10 million allegedly spent on luxury goods. Iza has pleaded guilty to multiple charges, including conspiracy against rights, wire fraud, and tax evasion, and remains in federal custody awaiting sentencing.

The Justice Department highlighted the case as an example of how law-enforcement authority can be exploited in private financial schemes, turning criminal activity into civil-rights violations.