Adam Iza, founder of the crypto trading platform Zort, is accused of paying Los Angeles Sheriff’s deputies for insider information.
He allegedly used this information to blackmail and attempt to rob a victim.
An FBI affidavit filed in LA federal court showed that Iza used this information to pressure a victim, identified only as E.Z.
Crypto Founder Accused of Bribing Police for Personal Data to Carry Out Extortion Scheme
As per the Federal prosecutor’s claims, the founder of a cryptocurrency company bribed police officers for inside information.
He aims to extort a victim and steal their crypto assets.
Adam Iza, who founded the crypto trading platform Zort, Inc., allegedly paid three Los Angeles Sheriff’s Department (LASD) deputies.
He ordered them to obtain search warrants and access police databases illegally.
According to an FBI affidavit filed in LA federal court on September 23 and revealed on September 26, Iza used this information to pressure a victim.
This victim identified only as E.Z., was pressured into giving up a laptop containing cryptocurrency.
Known by aliases like Ahmed Faiq and “The Godfather,” Iza allegedly bragged about paying the deputies $280,000 monthly for their involvement.
The allegations against Adam Iza date back to November 2021, when a Riverside County Sheriff’s Department report described a chilling incident between Iza and his former business partner, E.Z.
The two had known each other for two years and had previously worked together in the cryptocurrency space.
During a drive, Iza suggested they stop for food. Afterward, as they stood by the car, an SUV pulled up, and two men got out.
One of them, armed with a handgun, ordered E.Z. to “get in the car.”
E.Z. managed to escape and immediately called the police, fearing that Iza was trying to kidnap him to gain access to his cryptocurrency.
When questioned by officers, Iza claimed that E.Z. had agreed to give him $300,000 in exchange for some crypto.
read also:Cardano’s Founder Criticizes Ethereum
Crypto CEO Iza Funneled Payments to LASD Deputies Through His Company, Zort
Iza is accused of paying LASD deputies through Zort and other businesses owned by his then-girlfriend, with some payments reaching as high as $200,000.
However, the allegations against Iza go beyond bribery and extortion.
One individual interrogated by the FBI said that Iza and E.Z. broke into their house, with Iza acting like an FBI agent.
During this incident, Iza allegedly stole a laptop containing cryptocurrency and held the victim at gunpoint, demanding the password.
Now, Iza faces serious charges, including conspiracy to violate rights and tax evasion.
Prosecutors allege that he concealed the receipt of tens of millions of dollars and failed to report any income taxes from 2020 to 2022.
Neither Iza’s lawyer nor the LASD have yet responded to requests for comment.