Former Los Angeles County sheriff’s deputy Michael Coberg was sentenced to 63 months in federal prison for his role in a violent extortion scheme tied to a jailed crypto executive, authorities announced.
Prosecutors say Coberg conspired with Adam Iza — the founder of the crypto trading platform Zort, who styled himself “The Godfather” — to physically coerce victims into turning over cash and crypto. Coberg, who pleaded guilty in September to conspiracy to commit extortion and conspiracy against rights, was also ordered to pay $127,000 in restitution.
The abuses date to October 2021. According to court filings, Coberg picked up a man identified only as “L.A.” during a financial dispute linked to Iza, drove him to Iza’s home while standing watch, and watched as Iza filmed and forced the victim to transfer $127,000 to Iza’s account. Prosecutors say Coberg later took the same victim to a firing range where Iza held him at gunpoint and demanded more funds.
Officials also allege Coberg helped set up another target, identified as “R.C.,” in a drug-related arrest plot coordinated with Christopher Cadman, a fellow former deputy who has since pleaded guilty in the case. Prosecutors say Coberg was paid at least $20,000 a month by Iza for his services.
Iza pleaded guilty last year to extorting multiple victims and is currently awaiting sentencing. The case highlights a growing criminal tactic in the crypto world known as “wrench attacks,” in which perpetrators use physical coercion, threats or kidnapping to force victims to transfer funds — effectively bypassing digital security measures.
Crypto-related wrench attacks have become more visible in recent years. In one high-profile example reported by crypto.news, a couple in western Paris was held at gunpoint and compelled to transfer roughly $980,000 in Bitcoin. Law enforcement officials and industry observers warn holders to combine strong digital security with personal safety measures and to report coercion immediately.
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