Ex-Deputy Sentenced to 63 Months in Crypto Extortion Case

A former Los Angeles County Sheriff's Department deputy was sentenced to more than five years in federal prison on Monday for using his authority to assist a cryptocurrency entrepreneur in extorting business rivals and staging a false arrest.

Michael Coberg, 44, received a 63-month term from U.S. District Judge Percy Anderson in Los Angeles federal court. He was also ordered to pay $127,000 in restitution to one of the victims. Coberg pleaded guilty in September to conspiracy to commit extortion and conspiracy against rights. Prosecutors described his actions as a betrayal of his oath to protect the public, driven by financial gain.

Coberg worked as a deputy and helicopter pilot while earning at least $20,000 per month from Adam Iza, the 25-year-old founder of the cryptocurrency trading platform Zort. Iza, who referred to himself as the "Crypto Godfather," pleaded guilty in January 2025 to charges including conspiracy against rights, wire fraud, and tax evasion. He remains in federal custody awaiting sentencing.

The extortion schemes targeted individuals involved in financial disputes with Iza. In October 2021, Coberg and others picked up a victim identified in court documents as...