March 17, 2026 — A former Los Angeles County Sheriff’s deputy was sentenced to more than five years in federal prison for using his law enforcement authority to help a cryptocurrency founder known as “The Godfather” extort victims.
Michael Coberg received a 63-month sentence and was ordered to pay $127,000 in restitution. The U.S. Attorney’s Office for the Central District of California announced the sentencing this week.
Coberg pleaded guilty in September 2025 to conspiracy to commit extortion and conspiracy against rights. Prosecutors said he provided security services for Adam Iza, founder of the crypto trading platform Zort, in exchange for monthly payments of at least $20,000.
Details of the Extortion Scheme
Court documents reveal Coberg’s direct involvement in a 2021 extortion. He helped transport a victim, identified as “L.A.,” to Iza’s residence. Iza then recorded a video of L.A. transferring $127,000 to his bank account while Coberg stood guard.
Prosecutors said Coberg later drove Iza and the victim to a shooting range. There, Iza held L.A. at gunpoint and demanded more money transfers. The former deputy’s presence lent an air of official legitimacy to the criminal act.
“Coberg abused the awesome power of his badge,” prosecutors wrote in a sentencing memorandum. “And he did so for an all-too-common reason: greed.”
Orchestrating a Sham Drug Arrest
The former officer’s crimes extended beyond financial extortion. He conspired with Iza and others to arrange the drug possession arrest of another individual, identified as “R.C.”
This victim had previously been held at gunpoint by Iza and other former deputies to force a $25,000 transfer. To retaliate further, Coberg helped set up a sting operation.
R.C.’s ex-girlfriend lured them to Los Angeles under the pretense of using drugs together. After picking R.C. up from the airport and obtaining drugs, Coberg tipped off a Sheriff’s Department deputy, who then stopped and arrested the victim.
Broader Case and Co-Conspirators
Adam Iza, the central figure dubbed “The Godfather,” pleaded guilty to extortion charges in January 2025. He remains in custody awaiting sentencing. His platform, Zort, was a cryptocurrency trading service that operated prior to these investigations.
Another former Sheriff’s Department deputy, Christopher Cadman, pleaded guilty in August 2025 for his role in aiding Iza. The case highlights a troubling pattern of law enforcement personnel exploiting their positions within the cryptocurrency sector.
For official details on the sentencing, refer to the U.S. Attorney’s Office for the Central District of California.
Context of Crypto-Related Crime
This sentencing occurs amid increased regulatory scrutiny of cryptocurrency markets and related financial crimes. The involvement of sworn law enforcement officers marks a significant escalation in the typology of crypto-facilitated crime.
Analysts note that such cases erode public trust in both financial innovations and the institutions meant to police them. The FBI identifies public corruption as a top priority, with cases involving emerging technologies presenting complex challenges.
Coberg’s 63-month sentence reflects the severity with which the court views the corruption of a peace officer. The judge emphasized that the sentence should deter other officials from similar misconduct.
What comes next hinges on the pending sentencing of Adam Iza. Legal observers will watch for the court’s final determination on the mastermind of the extortion ring. The case serves as a stark warning about the convergence of digital currency and traditional corruption.
Updated insights and analysis added for better clarity.
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