Former Deputy Pleads Guilty in Cryptocurrency Fraud Case
Michael David Coberg, a former deputy with the Los Angeles County Sheriff’s Department, has entered a guilty plea in a federal court case that highlights severe misconduct tied to cryptocurrency fraud. Coberg, who operated in the role of an advisor to Adam Iza—self-dubbed the “Crypto Godfather”—admitted to conspiracy charges concerning extortion and violations of civil rights. Coberg’s acceptance of guilt was formally announced on Monday by the U.S. Attorney’s Office for the Central District of California.
Criminal Activities and Misconduct
The relationship between Coberg and Iza, who managed the now-defunct Zort trading platform and has been incarcerated since September 2024, involved significant criminal activity. While still serving as a sheriff’s deputy, Coberg allegedly participated in interrogating victims, facilitated wrongful arrests, and extracted hundreds of thousands of dollars, earning upwards of $20,000 per month from these illicit operations, as detailed in his plea agreement. Additionally, Coberg and Iza contemplated launching a business centered around anabolic steroids.
Commenting on the implications of Coberg’s actions, Kadan Stadelmann, Chief Technology Officer at Komodo Platform, emphasized the dangers of law enforcement personnel misusing their authority while off-duty, warning that it creates avenues for corruption and the intimidation of citizens.
Stadelmann specifically noted how Coberg wielded state power to advance fraudulent activities, raising concerns about the lack of oversight regarding off-duty law enforcement conduct.
Sentencing and Broader Implications
Coberg is set to receive his sentencing on February 17, 2026, facing a potential term of up to 20 years for his extortion charge and a maximum of 10 years for the conspiracy charge. Federal prosecutors have outlined that in 2021, Coberg conspired with Iza to threaten victims, including one instance where a businessman was coerced at gunpoint to hand over $127,000.
This case underscores a troubling pattern, as Coberg is not alone in his culpability. Other deputies, Christopher Michael Cadman and David Anthony Rodriguez, have also acknowledged their involvement with Iza, with Cadman due for sentencing in January 2026 and Rodriguez on November 10. Lastly, Eric Chase Saavedra, another former deputy linked with Iza’s corrupt dealings, pled guilty earlier this year and is still awaiting his sentencing.
Financial Impact of Iza’s Operations
Iza’s fraudulent operations resulted in the acquisition of a staggering $16 million in cryptocurrency, with about $10 million lavishly spent on luxury assets alongside his ex-girlfriend, Iris Ramaya Au, who confronted legal issues of her own after pleading guilty to failing to report $2.6 million in illicit earnings.
