A former Los Angeles County sheriff’s deputy has been sentenced to more than five years in prison for helping a jailed crypto founder run a violent extortion scheme.
Michael Coberg received a 63-month prison term and was ordered to pay $127,000 in restitution after admitting he helped Adam Iza — the founder of crypto trading platform Zort, nicknamed “The Godfather” — coerce victims into handing over cryptocurrency and cash. Prosecutors say Coberg was paid at least $20,000 a month by Iza for his role in the scheme.
According to court filings, the conspiracy dates to October 2021. Coberg and others picked up a man identified only as “L.A.” during a financial dispute involving Iza, brought him to Iza’s home, and recorded a video while forcing the victim to transfer $127,000 to Iza’s account as Coberg kept watch. Prosecutors say Coberg later took that same victim to a firing range, where Iza allegedly held him at gunpoint and demanded the transfer of funds.
Coberg also conspired to entrap another victim, identified as “R.C.,” in a staged drug arrest — a plot prosecutors say was coordinated with Christopher Cadman, another former deputy who has pleaded guilty in the case. Coberg pleaded guilty in September to conspiracy to commit extortion and conspiracy against rights; Iza previously pleaded guilty to extorting multiple victims and is awaiting sentencing.
The case highlights a growing trend in crypto crime: so-called “wrench attacks,” where attackers use physical coercion to bypass digital security and force victims to surrender cryptocurrency. High-profile examples include a recent incident in western Paris where a couple was held hostage and forced to transfer roughly $980,000 in Bitcoin. As law enforcement prosecutions continue, the industry faces increasing pressure to protect users from threats that combine offline violence with online finance.
Read more AI-generated news on: undefined/news
