A cryptocurrency entrepreneur known as the "crypto godfather" and a former Los Angeles County Sheriff’s Department deputy have pleaded guilty to serious federal charges, including conspiracy, civil rights violations, and tax evasion. The Department of Justice announced the plea agreements on January 17, revealing a disturbing scheme that exploited law enforcement resources for personal gain.
Key Takeaways
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Adam Iza, 24, founder of the Zort crypto trading platform, and Eric Chase Saavedra, 41, a former LASD deputy, admitted to multiple federal crimes.
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Iza hired off-duty deputies to intimidate and extort rivals, misusing law enforcement databases.
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Both defendants face significant prison time, with Iza potentially facing up to 35 years.
The Scheme Unveiled
Adam Iza, who has dubbed himself the "crypto godfather," orchestrated a complex scheme involving intimidation, extortion, and fraud. He employed off-duty LASD deputies as personal enforcers to target business rivals and perceived threats. Saavedra, leveraging his position as a deputy and task force officer with the U.S. Marshals Service, misused his authority to assist Iza in these illegal activities.
Court documents reveal that Iza sought to steal a laptop believed to contain over $100 million in cryptocurrency. In January 2022, Saavedra secured a search warrant under false pretenses, claiming the target was involved in a firearms investigation. This led to an armed break-in, which was thwarted when the victim fired a warning shot.
Violent Acts and Extortion
The prosecutors outlined several violent incidents linked to the conspiracy. In August 2021, LASD deputies allegedly held a victim at gunpoint at Iza’s residence, coercing a $25,000 bank transfer. In another incident in October 2021, Iza personally threatened a victim at gunpoint, demanding a transfer of $127,000.
Saavedra also operated a private security firm, employing off-duty deputies. Iza reportedly paid $100,000 monthly for security services, further entrenching the corrupt relationship between the two.
Financial Fraud and Tax Evasion
Beyond the extortion racket, Iza's operations extended to financial fraud. Between 2020 and 2022, he is accused of defrauding Meta Platforms Inc., stealing over $37 million by accessing business accounts and associated credit lines. Both Iza and Saavedra admitted to federal tax crimes, with Iza evading $6.7 million in taxes for 2021 and Saavedra failing to report $373,146 in income.
Facing Justice
Iza, who has been in federal custody since September 2024, could face up to 35 years in prison. Saavedra, who resigned from the LASD, faces up to 13 years. Both are expected to appear in federal court in Los Angeles soon.
U.S. Attorney Martin Estrada expressed the gravity of the situation, stating, "The conduct admitted to in these plea agreements is deeply disturbing and cannot be tolerated." He acknowledged the cooperation of the Los Angeles County Sheriff’s Department in addressing this corruption.
This case highlights the potential for abuse of power within law enforcement and the need for accountability in the cryptocurrency space, where the intersection of technology and crime continues to evolve.
Sources
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Crypto ‘godfather’ and LA cop plead guilty to tax, civil rights violations, Cointelegraph.
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Crypto ‘Godfather,’ Detective Plead to Civil Rights Violations, Bloomberg Law.
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Crypto 'Godfather' & Detective Guilty of Civil Rights Breach, The Crypto Times.
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Crypto ‘Godfather’ and LA County sheriff’s deputy to plead guilty in intimidation, extortion conspiracy – Orange County Register, Orange County Register.