Sheriff’s Deputy Sentenced for Extorting Rival of Self-Styled “Crypto Godfather”

A former Los Angeles County Sheriff’s deputy has been sentenced to more than five years in federal prison for helping a self-proclaimed crypto mogul—known as the “Crypto Godfather”—extort rivals and orchestrate illegal arrests. 

The deputy, Michael David Coberg, received a 63-month sentence after pleading guilty to conspiracy to commit extortion and conspiracy against rights. He was also ordered to pay $127,000 in restitution. 

Working for a Crypto “Godfather”

Coberg worked closely with Adam Iza, a 25-year-old crypto entrepreneur who referred to himself as “The Godfather” and has already pleaded guilty to multiple federal charges including fraud and tax evasion. 

While still an active deputy, Coberg acted as:

• A private security contractor

• A business partner and advisor

• An enforcer in disputes involving Iza’s crypto operations

He reportedly earned at least $20,000 per month for his services. 

Armed Extortion and Intimidation

In one incident, Coberg helped escort a victim to Iza’s residence, where the victim was forced to transfer $127,000 under threat of violence while Coberg stood guard. 

Prosecutors said Iza used firearms and intimidation tactics while Coberg leveraged his authority as a law enforcement officer to pressure victims.

In another case, a victim was previously forced to transfer $25,000 at gunpoint in a separate extortion scheme tied to the same network. 

Fake Arrest Scheme Targeting Rival

Coberg also helped orchestrate a fraudulent drug arrest targeting a rival.

According to court documents:

• The victim was lured from Miami to Los Angeles

• Co-conspirators encouraged the victim to obtain drugs

• A coordinated traffic stop led to the victim’s arrest

The operation was designed to harass and punish a business rival, using law enforcement resources as part of the scheme. 

Abuse of Power for Profit

Federal prosecutors emphasized that Coberg abused his law enforcement authority for personal gain, betraying the public trust.

He “betrayed that oath… for greed,” prosecutors stated in court filings. 

The case is part of a broader investigation into a network of corrupt deputies and associates working with Iza, some of whom have also pleaded guilty.