Former Los Angeles County Sheriff’s Department deputy Michael Coberg has been sentenced to 63 months in prison for helping jailed crypto founder Adam Iza extort victims. The court also ordered Coberg to pay $127,000 in restitution. Prosecutors said he was paid at least $20,000 a month for assisting Iza.
Victim was taken to Iza’s home during financial dispute
Prosecutors traced one episode to October 2021, when Coberg joined a team that picked up a man identified only as “L.A.” during a financial dispute connected to Iza. Coberg then brought the man to Iza’s house, where Iza recorded a video and forced him to transfer $127,000 into his bank account while Coberg stood watch.
Authorities also accused Coberg of taking that victim to a firing range, where Iza allegedly held him at gunpoint and demanded that funds be transferred. Iza is the founder of crypto trading platform Zort and was known as “The Godfather.”
Prosecutors described a separate arrest setup
In another part of the case, prosecutors said Coberg conspired to target a second victim identified as “R.C.” through a drug-related arrest setup. They said the effort involved Christopher Cadman, another former deputy who has also pleaded guilty.
Coberg pleaded guilty in September to conspiracy to commit extortion and conspiracy against rights. Iza pleaded guilty last year to extorting multiple victims and is still awaiting sentencing.
Physical coercion remains part of crypto crime cases
The report noted that crypto-related extortion cases, often called “wrench attacks,” have been increasing in recent years. It cited a separate case in western Paris, where a couple was held hostage and forced to transfer about $980,000 in Bitcoin, showing how attackers have used physical force to get around digital security barriers.