FBI Investigates Alleged Crypto Extortion Plot Involving LA Police

TLDR

• Adam Iza, founder of crypto platform Zort, allegedly paid LA Sheriff’s deputies for sensitive information
• Iza accused of using police data to blackmail and extort a victim for their crypto
• FBI affidavit claims Iza bragged about paying deputies $280,000 monthly
• Alleged victim claims Iza attempted to kidnap him to access his crypto
• Iza charged with conspiracy against rights and tax evasion

Adam Iza, the founder of cryptocurrency trading platform Zort, Inc., has been accused by federal prosecutors of paying Los Angeles Sheriff’s Department (LASD) deputies for unlawful access to sensitive information.

According to an FBI affidavit filed in a Los Angeles federal court on September 23, Iza allegedly used this information to extort a victim for their cryptocurrency.

The affidavit states that Iza, also known as Ahmed Faiq and “The Godfather,” reportedly boasted about paying $280,000 per month to LASD deputies.

In exchange, these officers allegedly filed unauthorized search warrants and provided access to police databases.

The primary target of Iza’s alleged scheme was an individual identified only as E.Z., a former business associate. According to a Riverside County Sheriff’s Department report from November 2021, E.Z. claimed that Iza attempted to kidnap him to gain access to his cryptocurrency.

The incident occurred when E.Z. was driving Iza, and they stopped for food. After exiting the vehicle, an SUV arrived, and two men approached E.Z., one brandishing a handgun and ordering him to “get in the car.”

E.Z. fled the scene and contacted the police. When questioned, Iza claimed that E.Z. had agreed to give him $300,000 worth of cryptocurrency and that he had texted his bodyguards for assistance due to concerns about being kidnapped.

The men in the SUV were identified as former LASD personnel, with one claiming to own a security company working for Iza.

Following this incident, E.Z. reportedly became the subject of what the complaint describes as a “campaign of intimidation and harassment” orchestrated by Iza. E.Z. received threatening messages containing his personal information from police databases, including photos of his family and car.

The FBI investigation uncovered evidence suggesting that Iza, through his company Zort and other businesses owned by his then-girlfriend, made substantial payments to three LASD deputies. These payments occasionally approached $200,000.

The complaint also alleges that Iza and E.Z. broke into another individual’s home, with Iza impersonating an FBI agent. They were accused of stealing a laptop containing cryptocurrency and holding the victim at gunpoint to obtain the password.

In addition to the alleged extortion scheme, Iza faces charges of tax evasion. The complaint states that he “concealed his receipt of tens of millions of dollars and did not report any income taxes” between 2020 and 2022.

The case highlights the potential for abuse when cryptocurrency intersects with law enforcement corruption. It raises questions about the security of digital assets and the lengths to which some individuals may go to illegally acquire them.