Federal prosecutors have filed serious accusations against Adam Iza, owner of the cryptocurrency trading platform Zort, Inc., for allegedly bribing Los Angeles Sheriff's Department (LASD) deputies to gain access to sensitive information. Iza, who also goes by the aliases Ahmed Faiq and "The Godfather," is accused of using this information in an attempt to extort a victim for their valuable cryptocurrency holdings. The allegations, filed in a Los Angeles federal court on September 23 and made public on September 26, expose a complex scheme involving bribery, extortion, and misuse of police resources.

Bribery and Extortion Scheme Unveiled

According to an FBI affidavit, Iza allegedly paid three LASD deputies $280,000 a month to unlawfully access confidential police data. This information was used to target a person identified only as E.Z., from whom Iza was attempting to extort a laptop containing valuable cryptocurrency assets. The FBI's investigation uncovered that Iza had obtained a GPS search warrant, unlawfully targeting E.Z., through these illicit payments.

Allegations Date Back to 2021

The accusations against Iza stem from an incident in November 2021. The Riverside County Sheriff's Department documented a disturbing encounter between Iza and E.Z., who had known each other for two years and were involved in a crypto business together. According to the report, Iza and E.Z. were driving together when Iza requested a stop for food. As they stood near their vehicle, an SUV approached, and two men exited, one of whom was armed. The armed man ordered E.Z. to "get in the car." E.Z. managed to escape and contacted law enforcement, fearing an attempted kidnapping orchestrated by Iza to gain access to his crypto assets.

When questioned by police, Iza claimed that E.Z. had agreed to provide him with $300,000 worth of cryptocurrency, and that he had called his bodyguards because he believed E.Z. was attempting to rob him. Investigators later discovered that the two men who confronted E.Z. were former LASD deputies, one of whom was now employed as a private security contractor for Iza. This individual admitted to responding to Iza's call and drawing his firearm, believing that E.Z. was armed; however, E.Z. was found to be carrying only an electric screwdriver.

Private Investigator Reveals More Damning Evidence

Further implicating Iza, a private investigator identified as K.C., who worked for Iza, claimed that Iza had sent him photographs of sensitive law enforcement data, including a GPS search warrant targeting E.Z.'s phone number. This warrant had been issued by an LASD deputy who had allegedly received payments from Iza, despite the case having no relevance to E.Z.

Payments Funneled Through Zort and Other Businesses

Iza reportedly funneled payments to the deputies through Zort and other businesses linked to his then-girlfriend. The payments, according to the complaint, sometimes reached as high as $200,000. These financial transactions were part of a larger network of illicit activities aimed at extorting cryptocurrency assets from E.Z.

Additional Criminal Allegations Surface

In addition to the bribery and extortion charges, another individual interviewed by the FBI accused Iza and E.Z. of breaking into their home. According to the complaint, Iza impersonated an FBI agent during the break-in, stealing a laptop containing cryptocurrency while holding the victim at gunpoint and demanding the password.

Iza now faces charges of conspiracy against rights and tax evasion. Prosecutors allege that from 2020 to 2022, Iza failed to report tens of millions of dollars in income and evaded paying taxes.

As the investigation continues, these allegations shed light on the lengths some individuals will go to in the burgeoning world of cryptocurrency, using illicit means to manipulate and control valuable assets. Iza’s case underscores the increasing need for stronger oversight and regulation within the crypto industry.