Ex-LASD Deputy Pleads Guilty in Conspiracy Tied to Crypto Fraudster Adam “Crypto Godfather” Iza

A former Los Angeles County Sheriff’s Department (LASD) deputy has confessed to a jaw-dropping conspiracy that merges cryptocurrency fraud with raw law enforcement corruption. Coberg, once a helicopter pilot for the LASD, pleaded guilty to federal conspiracy charges linked to Adam Iza, a self-styled “Crypto Godfather” who built an empire of digital scams backed by brute force and badge-wielding muscle.

• Guilty Admission: Coberg faces up to 30 years in prison for conspiracy in crypto fraud, with sentencing slated for February 17, 2026.
• Fraudster’s Payroll: Adam Iza, detained since September 2024, paid LASD deputies like Coberg to intimidate victims through abductions and staged arrests.
• Systemic Shame: This scandal amplifies distrust in the LASD, as federal probes uncover deeper corruption within the agency.

The Rise of a Crypto Conman

Adam Iza, branding himself the “Crypto Godfather,” didn’t just dabble in digital deception—he weaponized it. Operating at the shadowy crossroads of cryptocurrency scams and real-world coercion, Iza crafted a persona that promised riches through fraudulent marketing while delivering pain to anyone who crossed him. Now in federal custody awaiting sentencing in December 2024, his schemes have unraveled, exposing not just his crimes but a rotting core within the LASD itself. For more details on this case, check out the report on the former LASD deputy’s guilty plea tied to Adam Iza.

For those new to this space, cryptocurrency fraud often exploits the decentralized, pseudonymous nature of digital assets like Bitcoin. Think of it as using a codename online—it hides your real identity, but a determined investigator can still track you down. Scams can range from Ponzi schemes, where new investors’ money pays fake “profits” to earlier ones until the house of cards collapses, to fake investment platforms promising impossible returns. Iza’s playbook likely included such tactics, though specifics remain under wraps as investigations continue.

“Prosecutors say Iza built his reputation as the ‘Crypto Godfather’ by mixing ‘fraudulent marketing and cryptocurrency schemes’ with intimidation.”

Badges for Hire: Coberg’s Role in the Scandal

Coberg wasn’t a bit player in Iza’s twisted game—he was a key enforcer. Court filings reveal he pocketed at least $20,000 a month from Iza, a staggering sum for a supposed public servant. This wasn’t pocket change for coffee; it was blood money for betrayal. In September 2021, Coberg orchestrated the abduction of a businessman—referred to in documents as Victim 1—forcing him to pay $127,000 to settle a financial dispute with Iza.

Just a month earlier, in August 2021, Coberg facilitated a fake arrest of another individual, identified as Victim 2. This wasn’t law enforcement; it was theater—a staged act of authority to terrify and extract compliance. These acts of coercion weren’t anomalies but part of a chilling pattern, with Iza leveraging the weight of a badge to prop up his crypto con.

Let’s unpack the legal side for clarity. Conspiracy charges, as leveled against Coberg, mean agreeing to commit a crime with others, even if you don’t execute every step yourself. It’s the criminal equivalent of planning a heist—you’re guilty for the intent and coordination. Coberg’s plea admits to this collusion, and with a potential 30-year sentence looming, the cost of his greed is becoming painfully clear.

A Network of Corruption in the LASD

Coberg wasn’t the only deputy with dirt on his hands. Christopher Michael Cadman, another LASD officer, has also pleaded guilty to related charges, with sentencing set for January 2026. Eric Chase Saavedra, a third deputy, admitted to federal crimes including wire fraud—illegally transferring money through deceit—and tax evasion alongside Iza as early as January 2024. That’s three officers, not one, caught in this cesspool, pointing to a systemic rot that goes beyond a few rogue actors.

The LASD, already burdened by a history of misconduct allegations ranging from jail abuse to excessive force, now faces a fresh wave of public scorn. How does an agency tasked with upholding justice become a mercenary outfit for a crypto fraudster? It’s a disgusting betrayal of trust, and the fallout is still unfolding as the FBI and IRS Criminal Investigation dig deeper into Iza’s network.

“It’s also not a good look for the sheriff’s department, given how the so-called Crypto Godfather was able to get its personnel as guns for hire.”

Crypto’s Role in the Scandal: A Double-Edged Sword

For the uninitiated, decentralization is the heartbeat of cryptocurrencies like Bitcoin—no single entity, like a bank or government, controls the system, putting power back into individuals’ hands. But that freedom comes with risks. The pseudonymous nature of transactions, where wallet addresses replace names, offers privacy we champion here at Let’s Talk, Bitcoin. Yet it also creates a playground for scammers like Iza, who can obscure their tracks while fleecing victims through fake initial coin offerings (ICOs), pump-and-dump schemes, or outright phishing traps.

While exact details of Iza’s crypto scams remain under federal scrutiny, it’s reasonable to speculate he exploited early vulnerabilities in the space—think unregulated exchanges with no Know-Your-Customer (KYC) checks, where anyone could trade millions anonymously. Pair that with physical intimidation via corrupt deputies, and you’ve got a recipe for a criminal empire that’s as old-school as it is high-tech. The irony? A so-called “Crypto Godfather” leaned on centralized, brute-force tactics rather than the blockchain’s anonymity to enforce his will. Pathetic.

This scandal doesn’t just tarnish the LASD—it drags crypto’s reputation through the mud. Every time a fraudster like Iza makes headlines, it fuels the tired narrative that digital assets are just tools for crime, overshadowing the genuine innovation driving this financial revolution. Bitcoin maximalists like us grit our teeth at this, knowing the tech isn’t the problem; it’s the humans abusing it.

Counterpoint: Blockchain’s Promise Amid the Filth

Let’s not lose sight of the bigger picture. Despite Iza’s filth, blockchain technology remains a game-changer. Bitcoin’s Lightning Network, for instance, enables near-instant, dirt-cheap transactions without a middleman—a stark contrast to Iza’s extortion rackets. Ethereum’s smart contracts power decentralized finance (DeFi) applications that let users lend or borrow without banks, filling niches Bitcoin doesn’t aim to serve. These advancements aren’t diminished by one conman’s actions; they’re reasons to double down on weeding out bad actors.

The challenge isn’t the tech—it’s ensuring it’s not hijacked by crooks. This case screams for smarter safeguards, not suffocating regulation that kills innovation. Community-driven solutions, like open-source tools for scam detection or better education on spotting red flags (wild price promises, anyone?), can outpace fraud without sacrificing the ethos of decentralization. Effective accelerationism means pushing boundaries for a freer future, but not at the expense of enabling crime. We need to stay sharp and ruthless against shills and scammers.

The Human Cost and Institutional Reckoning

Beyond the courtroom drama lies the real toll—victims left financially ruined and emotionally scarred. Imagine being abducted or facing a fake arrest, all because you crossed a crypto fraudster with cops in his pocket. Victim 1, a local businessman, was coerced into paying $127,000, likely losing not just money but trust in the very systems meant to protect him. Victim 2 endured a staged arrest, a terrifying abuse of power that lingers long after the handcuffs come off. These are real people, not just case numbers, and their pain underscores the urgency of justice.

For the LASD, rebuilding credibility is a steep climb. This isn’t a standalone incident—past scandals, from inmate mistreatment to deputy gangs, paint a picture of an agency struggling with internal demons. Federal probes must go beyond Iza’s circle to root out corruption at every level. Stricter financial oversight for officers, mandatory transparency, and severe penalties for betrayal aren’t just options; they’re necessities. Public trust hangs by a thread, and it’s on the LASD to prove they’re not just hired goons in uniform.

Looking Ahead: Crypto and Law Enforcement Challenges

As Iza’s sentencing looms in December 2024, expect more revelations. Will additional accomplices surface? Could this scandal spur knee-jerk crypto laws in California that overreach and stifle privacy? The crypto community must stay vocal, advocating for balanced frameworks—think mandatory transparency for platforms without gutting decentralization. Internationally, cooperation on tracking illicit transactions could help, but only if it respects user autonomy. We’re not here for Big Brother; we’re here for a freer financial system.

This mess also highlights broader regulatory hurdles in the crypto space. Policing decentralized systems is like herding cats—transactions cross borders instantly, and bad actors exploit jurisdictional gaps. Iza’s case proves that fraud isn’t just digital; it’s often paired with real-world crime, requiring a hybrid crackdown that doesn’t trample innovation. It’s a tightrope, and we’re watching closely to see how lawmakers walk it.

Key Takeaways and Questions

• Who Is Adam Iza, the Crypto Godfather Behind LASD Corruption?
  Adam Iza, self-branded as the “Crypto Godfather,” is a convicted fraudster who orchestrated cryptocurrency scams while paying LASD deputies to intimidate victims through abductions and fake arrests, now awaiting sentencing in December 2024.
• How Did Crypto Fraud Fuel Iza’s Criminal Network?
  Iza likely exploited the pseudonymous nature of crypto transactions to conceal his identity, running scams like fake investments or unregulated trades, backed by real-world coercion via corrupt deputies.
• Why Does This LASD Scandal Damage Crypto’s Image?
  It amplifies the stereotype of cryptocurrency as a criminal haven, overshadowing blockchain’s legitimate potential and complicating mainstream adoption despite the tech’s revolutionary promise.
• What Can the Crypto Community Do to Combat Such Frauds?
  Focus on education about scam warning signs, support transparent platforms, and develop community tools to track illicit activity while preserving decentralization and privacy.
• How Must Law Enforcement Reform After This Crypto Scandal?
  Enforce stricter financial oversight for officers, impose harsher corruption penalties, and train personnel on digital asset crimes to prevent future collusion with fraudsters like Iza.

The road to redemption for both the LASD and the cryptocurrency industry is long and brutal. For Bitcoin maximalists and altcoin advocates alike, this is a gut-check moment—champion the tech, but never ignore the parasites trying to leech off the revolution. As federal investigations press on, more truths will surface, and with them, hopefully, justice for Iza’s victims. We’ll keep cutting through the noise to bring you the raw, unfiltered reality of this space—good, bad, and downright ugly.