Crypto Extortion Scheme Involves LA Deputies, $100 Million

Adam Iza, the founder of Zort Inc., orchestrated a crypto extortion operation targeting over $100 million, involving Los Angeles Sheriff's deputies. Iza, known as the "Crypto Godfather," admitted to crimes including wire fraud and tax evasion. The deputies, David Rodriguez and Christopher Cadman, used their badges to intimidate victims, securing assets for Iza. Their guilty pleas have drawn significant attention to the case.

The extortion scheme primarily targeted cryptocurrencies like BTC, with significant amounts detained. This misuse of authority has impacted financial confidence in crypto markets. Social discussions highlight the case's role in eroding trust within law enforcement and growing concerns over security for high-net-worth individuals in crypto.

This incident aligns with historical cases of corruption in asset recovery. High-profile engagement with crypto seldom sees law enforcement directly involved in extortion schemes. The Department of Justice noted, "The defendants used their badges and positions of authority not to uphold the law, but to line their pockets through intimidation and threats. This case is a disturbing reminder that corruption can undermine public trust in institutions and ultimately threaten the security of individuals."

Two former Los Angeles County sheriff’s deputies, David Anthony Rodriguez and Christopher Michael Cadman, have admitted to committing criminal acts while working as private security for Adam Iza. Rodriguez pleaded guilty to conspiracy against rights, while Cadman agreed to plead guilty to conspiracy against rights and subscribing to a false tax return. The deputies were involved in a scheme to harass, threaten, and intimidate victims for Iza.

Rodriguez admitted to lying to a judge to improperly obtain a search warrant for a victim’s GPS location in 2022. He shared this information with Eric Chase Saavedra, another deputy who operated a private security business and pleaded guilty to similar charges. The victim’s location was used to harass and intimidate them, with Rodriguez facing a maximum of 10 years in federal prison at his sentencing hearing in November.

Cadman and another deputy, referred to as “LASD Deputy 6” in court filings, intimidated and threatened a victim who was one of Iza’s adversaries in August 2021. During a meeting in Iza’s mansion, LASD Deputy 6 held the victim at gunpoint, leading to the transfer of approximately $25,000 from the victim’s bank account to Iza’s. The following month, Cadman and other officers orchestrated a traffic stop to arrest the same victim. Cadman also admitted to receiving at least $40,500 in income that he knowingly failed to report on his federal 2021 tax return, facing up to 13 years in federal prison after pleading guilty.

The Sheriff’s Department stated that it has cooperated with the federal investigation and that Rodriguez and Cadman were relieved of duty in October 2023 and October 2024, respectively. The department emphasized that the alleged actions do not reflect the values of the department or the work of the majority of its deputies who serve with integrity.

This case highlights the misuse of power by law enforcement officials for personal gain, raising concerns about the integrity of law enforcement agencies and the potential for corruption within their ranks. The involvement of deputies in criminal activities while working for a private individual underscores the need for stricter oversight and accountability measures within law enforcement agencies. The case also serves as a reminder of the potential dangers of unregulated cryptocurrency activities and the need for greater regulation and oversight in the industry.