fraud

Another scandal is shaking U.S. law enforcement. A former Los Angeles County sheriff’s deputy, who worked alongside the self-proclaimed “crypto godfather,” has pleaded guilty in federal court. Experts say the case represents “a new level of cryptocurrency abuse,” this time directly tied to state authority.

A Policeman Turned Enforcer
The accused, Michael David Coberg of Eastvale, admitted guilt to charges of conspiracy to commit extortion and conspiracy against individuals. Prosecutors revealed that Coberg partnered with crypto entrepreneur Adam Iza, the founder of the now-defunct trading platform Zort. Iza has been held in federal custody since September 2024.
According to court documents, Coberg exploited his badge while still on duty: interrogating victims, staging fake arrests, and helping Iza extort hundreds of thousands of dollars. For his services, he collected at least $20,000 per month. The two even discussed launching a joint business in anabolic steroids.

Brutal Tactics and Intimidation
Investigators outlined disturbing incidents: in 2021, they forced one businessman at gunpoint to transfer $127,000. In another case, they staged a false drug-related arrest of a businessman in Paramount.
“Coberg abused his official power to support fraudulent schemes, which is extremely alarming. The state holds a monopoly on force, and he wielded it for personal gain,” commented expert Kadan Stadelmann.
He added that the case highlights the dangers of off-duty policing without oversight. Combining official authority, violence, and crypto fraud, he said, goes far beyond typical schemes such as fraudulent ICOs.

A Wider Network of Accomplices
Coberg is not the only one implicated. Christopher Michael Cadman and David Anthony Rodriguez have also pleaded guilty for their roles with Iza, with sentencing scheduled for January and November 2026. Another former sheriff’s deputy, Eric Chase Saavedra, admitted guilt earlier in February and awaits sentencing for accepting bribes connected to influencing the LAPD.
During his fraudulent ventures, Iza acquired cryptocurrencies worth over $16 million. Together with his former partner Iris Ramaya Au, who admitted failing to report $2.6 million in illicit income, he spent around $10 million on luxury goods.

Facing Harsh Sentences
Michael Coberg is set to be sentenced on February 17, 2026. He faces up to 20 years in federal prison for extortion, plus an additional 10 years for conspiracy against individuals. The case is shaping up to be one of the starkest examples of how deep the ties between crypto crime and corrupt law enforcement can go.

#CryptoCrime , #CryptoNews , #bitcoin , #fraud , #CryptoScandal

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Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

According to a recent article in The New York Times, Sam "SBF" Bankman-Fried, the founder of the cryptocurrency exchange FTX, is providing investment advice to prison guards and suggesting investments in the cryptocurrency Solana.
SBF's legal representatives seek a lighter sentence
The legal team of former FTX chief, Sam "SBF" Bankman-Fried, filed a motion in the Federal District Court in Manhattan requesting a sentence ranging from five and a quarter years to six and a half years. Following charges of multiple offenses including fraud and money laundering, which could have led SBF to face up to 110 years in prison, this request emerges as a response to last year's jury verdict.
Details of the charges and expected sentence
SBF faces charges of various financial crimes, including wire fraud, conspiracy to commit securities fraud, and money laundering. The sentence for SBF is scheduled to be handed down by Judge Lewis A. Kaplan on March 28, while federal prosecutors are expected to submit their sentencing recommendation by March 15. A preliminary investigation report suggested a sentence of 100 years.
Defense arguments for a reduced sentence
SBF's lawyers have labeled the proposed century-long sentence as "barbaric," pointing out that SBF is a first-time offender with no prior criminal record and that four co-defendants have confessed to the crimes. Furthermore, they argued that the damages to clients, creditors, and investors are zero, as the bankruptcy process of FTX is expected to enable full reimbursement to clients for their losses.
SBF's life in prison and his advice to prison guards
Since his imprisonment at the Metropolitan Detention Center in Brooklyn last summer, several stories about SBF have emerged from prison, including his offering of trading and investment advice to prison guards, recommending investment in the cryptocurrency Solana. This activity follows the collapse of FTX, one of the largest crypto exchanges, which was valued at $32 billion in January 2022 before collapsing in November of the same year due to mismanagement and fraud involving $8 billion of customer funds.
$SOL
#Solana #SBF #fraud

Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“