Former Los Angeles Deputy Sheriff Admits to Conspiring with "Crypto Godfather" in Extortion Scheme

ChainCatcher news, according to Decrypt, the U.S. Attorney’s Office disclosed that former Los Angeles County Deputy Sheriff Michael David Coberg pleaded guilty on September 26 to federal felonies including conspiracy to commit extortion and deprivation of civil rights.

He used his police position to provide illegal protection for Adam Iza, who called himself the "Godfather of Cryptocurrency," receiving at least $20,000 per month in compensation. According to the plea agreement, Coberg abused his law enforcement authority multiple times in 2021: he once threatened a businessman at gunpoint to transfer $127,000 to Iza, and plotted a fake drug arrest against another victim. This case exposes regulatory loopholes in law enforcement. The CTO of Komodo platform pointed out, "This case marks a new level of cryptocurrency misconduct, with law enforcement officers extending public power beyond their authority." Including Coberg, four law enforcement officers have pleaded guilty in connection with the case. The main perpetrator, Iza, fraudulently obtained $16 million in cryptocurrency, and his ex-girlfriend also pleaded guilty to concealing $2.6 million in illegal proceeds. Coberg faces up to 30 years in prison, with a sentencing hearing scheduled for February 2026.