A former Los Angeles County deputy, Michael Coberg, has been sentenced to 63 months in prison for aiding jailed crypto founder Adam Iza in extortion schemes. Coberg was also ordered to pay $127,000 in restitution.
Prosecutors revealed Coberg received at least $20,000 a month from Iza, the founder of crypto platform Zort, nicknamed “The Godfather,” for his role in detaining victims, forcing crypto transfers, and assisting in criminal setups.
One notable incident occurred in October 2021, when Coberg helped pick up a man referred to as “L.A.” during a financial dispute. The victim was taken to Iza’s house, where he was coerced into transferring $127,000 while Coberg stood watch.
Coberg was also involved in taking the victim to a firing range, where Iza allegedly held him at gunpoint to enforce the transfer of funds.
Further investigations revealed Coberg conspired in a drug-related arrest setup targeting another victim, “R.C.,” in coordination with Christopher Cadman, another ex-deputy who has pleaded guilty.
Iza has already pleaded guilty to extorting multiple victims and is awaiting sentencing. Cases like these, often called “wrench attacks,” are increasing, with criminals using physical threats to bypass crypto security.
Authorities warn that such crypto-related extortion schemes are on the rise globally, with incidents ranging from hostage-taking to forced crypto transfers worth hundreds of thousands of dollars.
