TLDR
- Michael Coberg, former deputy with LA Sheriff’s office, received 63-month prison term
- Earned monthly payments of $20,000 working security for cryptocurrency entrepreneur Adam Iza
- Adam Iza, self-described “Crypto Godfather,” threatened victim with firearm to obtain $127,000 transfer
- Orchestrated fabricated narcotics arrest targeting another victim flown in from Miami
- Adam Iza admitted guilt to charges and awaits sentencing determination
A one-time Los Angeles County Sheriff’s deputy is heading to federal prison after leveraging his position in law enforcement to assist a cryptocurrency businessman in terrorizing competitors and orchestrating a bogus arrest.
On Monday, Michael Coberg, age 44, received a 63-month federal prison sentence. The court additionally mandated restitution payment of $127,000.
Back in September, Coberg entered a guilty plea to charges including conspiracy to commit extortion and conspiracy against rights.
According to federal prosecutors, Coberg collected minimum monthly payments of $20,000 serving as a private security contractor for Adam Iza, who established the cryptocurrency trading platform Zort. Iza adopted the moniker “Crypto Godfather.”
Federal authorities have held Iza in custody since September 2024.
The Extortion Scheme
During October 2021, Coberg participated in retrieving an individual — court documents refer to him as “L.A.” — whose business associate was embroiled in a financial conflict with Iza.
Coberg transported this individual to Iza’s residence, where Iza filmed the victim executing a $127,000 bank account transfer while Coberg maintained watch. The victim’s passport was confiscated prior to release.
On another occasion, Coberg accompanied Iza in taking the victim to a firearms range. Federal prosecutors stated that Iza threatened the individual with a weapon while demanding monetary transfers.
In an unrelated incident, a victim designated as “R.C.” had previously been held at gunpoint by Iza alongside two additional deputies and coerced into transferring $25,000.
Coberg and accomplices subsequently arranged for R.C.’s former romantic partner to contact and persuade R.C. to travel from Miami to Los Angeles based on fabricated reasons.
The Staged Arrest
Following R.C.’s arrival, the victim was instructed to acquire narcotics. Coberg alerted a colleague deputy, who conducted a traffic stop and executed the arrest.
Federal prosecutors characterized this as a fraudulent drug operation engineered to punish Iza’s business adversary.
Christopher Cadman, another former deputy, had previously admitted guilt in August for his participation in assisting Iza.
In their sentencing memorandum, prosecutors stated that Coberg “betrayed that oath and those he swore to protect, abusing the awesome power of his badge. And he did so for an all-too-common reason: greed.”
Law enforcement officials indicated that Iza operated an extensive network incorporating off-duty police personnel.
Prosecutors contended the organization engaged in a conspiracy that at certain points targeted the theft of cryptocurrency assets valued up to $100 million.
In January 2025, Adam Iza entered guilty pleas to numerous charges including fraud and conspiracy against rights. His sentencing hearing remains scheduled for a future date.
