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Ex-LA deputy sent to prison for aiding crypto “God Father” in extortion scheme

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Ex-LA deputy sent to prison for aiding crypto “God Father” in extortion scheme

An ex-Los Angeles County Sheriff’s Department deputy was sentenced to prison for his role in extorting victims alongside a jailed crypto figure.

Summary

  • Former LA County deputy Michael Coberg was sentenced to 63 months in prison and ordered to pay $127,000 for assisting crypto founder Adam Iza in multiple extortion schemes.
  • Prosecutors said Coberg received at least $20,000 a month and used his position to help detain victims, force crypto transfers, and orchestrate a drug-related arrest setup.

Michael Coberg, who served as a deputy with the department, was handed a 63-month prison sentence for helping jailed crypto founder Adam Iza extort victims.

He has also been ordered to pay $127,000 in restitution.

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According to prosecutors, Coberg received at least $20,000 a month for his services from Iza, who founded the crypto trading platform Zort and was known as “The Godfather.”

The incident dates back to October 2021, when Coberg was part of a team that picked up a man identified only as “L.A.” amid a financial dispute tied to Iza.

Coberg then brought L.A. to Iza’s house, where Iza recorded a video and forced him to transfer $127,000 to his bank account while Coberg stood watch.

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Subsequently, Coberg was also accused of taking the victim to a firing range, where Iza held him at gunpoint and demanded the transfer of funds.

Prosecutors further noted that Coberg conspired to set up another victim, identified only as “R.C.,” in a drug-related arrest scheme.

Prosecutors also noted that R.C. had been targeted in coordination with Christopher Cadman, another former deputy who has also pleaded guilty in the case.

Coberg pleaded guilty in September to conspiracy to commit extortion and conspiracy against rights. Meanwhile, Iza is currently awaiting sentencing after pleading guilty last year to extorting multiple victims.

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Cases involving crypto-related extortion, often referred to as wrench attacks, have been on the rise in recent years. As previously reported by crypto.news, a couple in western Paris was held hostage and forced to transfer roughly $980,000 in Bitcoin, underscoring how physical coercion is increasingly being used to bypass digital security measures.

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Crypto World

Bitrefill Claims Lazarus Group Hacked Them, Stealing Funds

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Bitrefill Claims Lazarus Group Hacked Them, Stealing Funds

Crypto e-commerce store Bitrefill has revealed it was the victim of a cybersecurity attack on March 1, with the methods used closely resembling those of Lazarus Group, North Korea’s notorious hacking organization.

In a post to X on Tuesday, Bitrefill said the hackers used malware, on-chain tracing, and reused IP and email infrastructure to compromise an employee’s laptop, enabling them to drain funds from the company’s hot wallets while also accessing 18,500 purchase records, potentially revealing “limited customer information.”

Bitrefill said BlueNoroff Group, another North Korean hacking organization with close ties to the Lazarus Group, may have also been involved or been the sole attacker.


Source: Bitrefill

Bitrefill, which enables customers to spend crypto on real-world products and gift cards, said there was no evidence that the hackers extracted its database, suggesting the motive was financial.

“There is no evidence that they extracted our entire database, only that the attackers ran a limited number of queries consistent with probing to understand what there was to steal, including cryptocurrency and Bitrefill gift card inventory.”

While Bitrefill didn’t disclose how much funds were stolen, the company said it “will absorb” those losses from its operational capital.

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“Almost everything is back to normal: payments, stock, accounts,” Bitrefill said, adding: “Sales volumes are also back to normal, and we are eternally thankful to our customers for your continued confidence in us.”