Crypto executive accused of using LA police for cryptocurrency extortion, FBI says

A crypto executive has been accused of running an extortion scheme involving Los Angeles Sheriff’s Department (LASD) deputies, according to a recent FBI affidavit.

The suspect was identified as Adam Iza of the Zort platform. He is facing charges of conspiracy against rights and tax evasion.

FBI Special Agent Barbara Johnson’s affidavit outlines a wide-ranging investigation into Iza and LASD deputies. The investigation is for allegedly extorting money and property from victims in Los Angeles and elsewhere.

FBI alleges extortion and payments to LASD

The scheme reportedly involved payments to LASD deputies in exchange for unlawful acts. This included unauthorized searches and arrests to intimidate and silence victims.

The FBI investigation identified multiple situations of alleged extortion and civil rights violations. In one case, a victim identified as E.Z. reported being the target of an attempted robbery and kidnapping by Iza and others.

The affidavit states that Iza used LASD deputies to obtain an unlawful warrant targeting E.Z. Iza also allegedly impersonated an FBI agent during a 2018 home invasion robbery. This is where he stole a laptop containing crypto and demanded passwords to access it.

Victim claims he was forced to transfer $25,000

Another victim, R.C., claimed to have been extorted by Iza and LASD deputies following a party he organized for Iza.

R.C. alleged that he was forced to transfer $25,000 from his business account to Iza’s account while being held at gunpoint by bodyguards. R.C. stated that some of them appeared to be law enforcement officers.

Financial tracing revealed payments from Iza and his associates to LASD deputies. For example, one deputy and his business reportedly received over $250,000 from Iza’s company, Zort.

The affidavit suggests that these payments were made in exchange for various illegal activities, including obtaining unauthorized warrants and conducting unlawful searches.

The FBI investigation also uncovered evidence of major tax evasion. Despite accumulating tens of millions of dollars through allegedly fraudulent means, Iza reportedly did not file income tax returns for the years 2020 through 2022.

During this period, he was accused of spending millions on personal expenses, including leasing multiple luxury vehicles such as Ferraris and Lamborghinis, purchasing luxury goods and funding extensive travel.

The affidavit notes that Iza left the United States for the United Arab Emirates in March 2023 and only briefly returned in July 2024.

Messages reviewed by the FBI indicate that Iza had shown intentions to move to Monaco or Switzerland. At the time of the affidavit’s filing, Iza was reportedly planning to travel from Los Angeles to Zurich, Switzerland.