Cryptocurrency Crime and Enforcement

Former Los Angeles County Sheriff’s Deputy and helicopter pilot Michael David Coberg, 44, has been sentenced to 63 months in federal prison for his role in a cryptocurrency‑related extortion conspiracy that included staging a sham arrest of a rival, federal prosecutors said Monday. Coberg pleaded guilty in September 2025 to one count of conspiracy to commit extortion and another conspiracy‑related charge in the U.S. District Court for the Central District of California. Judge Percy Anderson also ordered him to pay $127,000 in restitution after finding that Coberg abused his badge and authority while moonlighting as a highly paid security contractor and business adviser to self‑proclaimed crypto “Godfather” Adam Iza, who prosecutors say ran fraudulent marketing and cryptocurrency schemes. Prosecutors detailed how Coberg collected at least $20,000 a month from Iza and even discussed launching an anabolic‑steroid business with him, behavior they said showed he “violated his oath and abused his power for an all‑too‑common reason: greed.” The case underscores both the corruption risk when sworn officers freelance in lightly regulated crypto circles and the Justice Department’s continuing push to treat crypto‑linked extortion and fraud as serious federal crimes, not online hustles.