LA Sheriff’s Deputy Pleads Guilty to Crypto Criminal Conspiracy
A former LA sheriff’s deputy has pleaded guilty to extortion and corruption charges tied to a crypto crime ring, facing decades in prison.
A former LA sheriff’s deputy just pleaded guilty to several crimes, acting as an enforcer in a greater crypto corruption scheme. He abused his authority to extort victims on behalf of his employer.
The incidents in question took place in 2021, but this is still an important breakthrough for crimefighters. The deputy in question could face over 20 years in prison.
One Deputy’s Crypto Crimes
Two months ago, a self-described “Crypto Godfather” made headlines with a notorious criminal ring, employing LA sheriff’s deputies to act as muscle in a crypto extortion scheme. This operation just took another blow, as one of the deputies in question pleaded guilty to corruption charges:
“Michael David Coberg, 44, of Eastvale, pleaded guilty to a two-count information charging him with conspiracy to commit extortion and conspiracy against rights. According to his plea agreement, Coberg – then employed as an LASD deputy and helicopter pilot – worked on the side with Adam Iza,” the relevant US Attorney’s Office claimed in a statement.
The report details a number of unsavory crypto crimes that Coberg and other LA sheriff’s deputies participated in. The “Godfather” paid him $20,000 a month for his services, planning to open another side hustle selling anabolic steroids. In the main, though, he acted as an enforcer.
Abusing A Badge for Extortion
In 2021, Coberg evidently took the lead in kidnapping a victim to extort $127,000 from him. Several security guards also facilitated this crime, but Coberg identified himself as an active-duty law enforcement officer to further increase his stature. He transported the victim, confiscated his passport, and threatened him with firearms over a two-day period.
As this incident shows, Coberg’s status as an LA sheriff’s deputy further enabled his crypto crimes. He and another corrupt deputy conspired to have one extortion victim arrested on false charges.
Specifically, they had one associate riding in a car with the target, carrying drugs in the vehicle. They then persuaded another policeman that the criminal accomplice was actually an informant, claiming that the victim was the owner of these drugs. This officer then arrested the extortion victim while the “Crypto Godfather” watched from nearby.
For these disturbing crypto crimes, this LA sheriff’s deputy will face at least 20 years in prison. He only pleaded guilty to these two offenses, and he may be able to reach a plea deal to reduce his time served. Still, his scamming days should be at an end.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Is Cardano Worth Holding in 2026? Lark Davis Compares ADA With Bitcoin Stocks

Crypto Market Could Reach $10 Trillion in Two Years, Raoul Pal Predicts
No-KYC Crypto Exchanges in 2026: Where You Can Still Swap Without ID
VIPEarnings Under Scrutiny Amid High Interest Rates and Platform Recovery
1. U.S. equities gained over the week, while crypto assets declined, reflecting a divergence in risk appetite. From October 3 to 9, the S&P 500 rose 1.15% and the Nasdaq 100 gained 0.24%, while BTC, ETH, and SOL fell 2.31%, 6.84%, and 7.99%, respectively. The U.S. Dollar Index advanced 0.27%, and although the 10-year U.S. Treasury yield declined 3.3 basis points, it remained elevated at 5.244%. High funding costs therefore continued to weigh on risk asset valuations. 2. Weak employment data have not eliminated inflation concerns, while AI and on-chain finance face growing scrutiny over commercial viability. September nonfarm payrolls increased by just 29,000, yet the minutes of the Federal Reserve's September meeting still pointed to the possibility of further rate hikes before year-end. This week's CPI release and major bank earnings will provide important tests of growth and inflation pressures. Revenue recognition and reporting practices in AI, underlying asset rights in RWA, and operating costs for Layer 2 networks are also becoming increasingly important measures of commercial viability. 3. Bitget has completed its phased service restoration, while the Bitget Alliance Program continues to support clients' trading and capital management needs. We completed the planned restoration on October 2 and replenished the Protection Fund to more than $300 million on September 30. According to DefiLlama, assets tracked on the platform rebounded from approximately $5.647 billion on October 1 to $6.223 billion on October 11. This report also outlines VIP level protection, user rewards, and institutional fee incentives to help high-value clients plan their trading activities according to their account type. Assets to watch: BTC, ETH, SOL, SUI, PUMP, gold, JPM, BAC, and ASML. Key areas of focus this week: The October 14 U.S. CPI release; bank net interest income and credit costs; AI cash flow generation; and post-recovery trends in assets held on Bitget, settlement efficiency, and trading conditions. Market data are current through October 9 or the latest local trading day. Official announcements and promotion terms were reviewed through October 12.

