The former Los Angeles County Sheriff’s aide lit Moonlight as the muscle of a self-proclaimed “crypto godfather” admitted his guilt in federal court, which experts described as “next-level encryption fraud.”
Michael David Coberg of Eastvale pleaded guilty on Monday to conspiracy to commit a terror over rights and conspiracy. statement by the US Lawyer’s Office in the Central District of California.
Coberg worked as a business partner and advisor for Adam Iza. Fraudulent Crypto-Entrepreneurs Currently, it operates the deprecated trading platform Zort and has been in federal custody since September 2024.
According to the judicial agreement, the former sheriff as an active officer questioned the victim, adjusted false arrests, and helped force hundreds of thousands of dollars while collecting hundreds of thousands of dollars each month.
The two even planned to start an anabolic steroid business.
“Cops should not be able to use badges at a disadvantage to open opportunities for civil corruption and threats,” said Kadan Stadelmann, chief technology officer at Komodo Platform. Decryption.
Coberg is scheduled to be sentenced February 17, 2026, facing more than 20 years in federal prison on extortion counts and up to 10 years in conspiracy against rights.
Prosecutors say Coberg conspired with the IZA in 2021 to blackmail the victims. Force one businessman to transfer $127,000 at the muzzle and coordinates the false drug arrest of another person in Paramount.
“Coberg used state power to further use a fraudulent scheme that he is particularly concerned about in this case,” says Stadelmann. “The state monopolizes its troops, and Coberg assumed that power would expand beyond his duties as a sheriff.”
Stadelmann pointed to how blurred public-private boundaries underline “weak surveillance of unjustified work that is not checked by corruption.”
“This scam is well beyond the typical crypto fraud or ICO scheme as it unleashes the next level of crypto fraud and involves law enforcement using threatening tactics,” he said.
Apart from Coberg, Christopher Michael Cudman and David Anthony Rodriguez are also MPs. Plead guilty On their role in cooperation with Iza. Cadman is expected to be sentenced in January 2026, and Rodriguez is expected to be sentenced on November 10th.
Another former deputy lieutenant in connection with Isa’s LAPD payout, Eric Chase Savedra, admitted his guilt in February and is still waiting for his sentence.
In the course of the IZA scheme, he obtained a $16 million code through fraudulent means and spent about $10 million on luxury goods along with his ex-girlfriend Iris Ramaya Au. Plead guilty In March, they were unable to report $2.6 million in illegal income.
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