Ex-LA cop gets 5 years in prison for helping crypto ‘Godfather’ extort victims

Michael Coberg was sentenced to 63 months in prison for helping the so-called crypto “Godfather” stage a sham drug bust and extort a victim for $127,000.

A former Los Angeles County Sheriff’s Department deputy has been sentenced to more than five years in prison for helping Adam Iza, a jailed crypto founder dubbed “The Godfather,” extort victims.

A California federal court handed Michael Coberg 63 months in prison and an order to pay $127,000 in restitution for helping Iza extort one of his rivals and arrange a drug possession arrest of another person, the Los Angeles US Attorney's office said on Monday. 

Coberg had pleaded guilty in September to conspiracy to commit extortion and conspiracy against rights.

Prosecutors said Coberg was paid at least $20,000 a month for his security services by Iza, the founder of the crypto trading platform Zort, who was known as “The Godfather.” 

Iza pleaded guilty in January 2025 to extorting multiple people and is awaiting sentencing.

According to prosecutors, in October 2021, Coberg was part of a team that picked up a man, identified only as “L.A.,” who had a business partner in a financial dispute with Iza. 

Coberg brought L.A. to Iza’s house, where Iza recorded a video of L.A. transferring $127,000 to Iza’s bank account while Coberg stood watch.

Coberg also took Iza and L.A. to a shooting range, where prosecutors said Iza held L.A. at gunpoint and demanded he transfer money.

Prosecutors said Coberg also conspired with Iza and others to set up a victim, identified only as “R.C.,” to be arrested over drugs.

Related: Former LAPD officer convicted of kidnapping teen in $350K crypto robbery

R.C. had been involved in a dispute where Iza, Christopher Cadman — a former Sheriff’s Department deputy who pleaded guilty in August to helping Iza — and another deputy had held R.C. at gunpoint to transfer $25,000 to Iza.

Coberg and others set up a sham sting where R.C.’s ex-girlfriend called and convinced them to fly to LA to use drugs together.

R.C. was picked up at the airport, driven to get drugs and was then stopped and arrested by a Sheriff’s Department deputy that Coberg had tipped off.

Prosecutors said in their sentencing memorandum for Coberg that he abused “the awesome power of his badge. And he did so for an all-too-common reason: greed.”

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Source: CoinTelegraph