A former Los Angeles County Sheriff's deputy, Michael David Coberg, 44, has been sentenced to 63 months (over five years) in federal prison and ordered to pay $127,000 in restitution for his role in a criminal conspiracy led by cryptocurrency entrepreneur Adam Iza, who called himself the "Crypto Godfather." Coberg pleaded guilty in September to conspiracy to commit extortion and conspiracy against rights.
The scheme, which unfolded in 2021, involved Coberg abusing his position as a deputy and helicopter pilot to assist Iza in targeting business rivals. According to the Department of Justice, Coberg was paid at least $20,000 per month to work as a security operative for Iza, the founder of the crypto trading platform Zort.
In one October 2021 incident, Coberg helped bring a victim (identified as "L.A.") to Iza's house. Iza recorded a video of the victim being forced to transfer $127,000 to his bank account while Coberg stood guard. The victim's passport was confiscated before release. Prosecutors detailed another instance where Iza held a victim at gunpoint at a shooting range, demanding a money transfer, with Coberg present.
In a separate, elaborate plot, Coberg helped orchestrate a staged drug arrest to retaliate against another rival. The conspirators lured a victim ("R.C.") from Miami to Los Angeles under false pretenses, instructed him to obtain narcotics, and then Coberg tipped off a fellow deputy to conduct a traffic stop and arrest. This was described as a "sham drug sting."
"Coberg swore an oath to uphold the Constitution and laws of the United States," prosecutors stated. "Instead, [he] 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."
This sentencing is part of a broader case centered on Adam Iza, who has been in federal custody since September 2024. Iza pleaded guilty in January 2025 to multiple charges, including fraud and conspiracy against rights, and is awaiting sentencing. A second former deputy, Christopher Cadman, also pleaded guilty in August for his role.
Authorities allege Iza led a network that included off-duty law enforcement officers in a wider operation involving intimidation, fraud, and crypto-related disputes. Prosecutors claimed the group at one point aimed to steal as much as $100 million in cryptocurrency assets.
