Ex-LA deputy sentenced for crypto extortion scheme

Ex-LA deputy Michael Coberg got 63 months in prison and must pay $127,000 for helping crypto entrepreneur Adam Iza extort rivals and stage a fake drug arrest. Iza awaits sentencing.

Michael David Coberg, a former Los Angeles County sheriff’s deputy, has been sentenced to 63 months in federal prison and ordered to pay $127,000 in restitution for his role in a crypto-related extortion scheme. Coberg pleaded guilty to conspiracy to commit extortion and civil rights violations after working with Adam Iza, a self-proclaimed crypto entrepreneur known as the “Godfather.” Coberg received at least $20,000 per month from Iza to act as a security operative and partner. In 2021, he assisted Iza in extorting $127,000 from a victim by impersonating a law enforcement officer, threatening the victim with firearms, and overseeing a forced transfer. The scheme also involved a staged drug arrest of another victim, who was lured from Miami and falsely accused. This case highlights the abuse of law enforcement authority to intimidate and extort competitors within the cryptocurrency industry. Adam Iza has pleaded guilty and is awaiting sentencing, while another co-conspirator remains in custody.