Crypto CEO bribes police for info in extortion scheme.

Federal prosecutors have leveled accusations against Adam Iza, the owner of the cryptocurrency trading platform Zort, Inc., alleging that he bribed Los Angeles Sheriff's Department (LASD) deputies to access sensitive information in a bid to extort a victim for their crypto assets. According to an FBI affidavit filed in a Los Angeles federal court on September 23 and made public on September 26, Iza purportedly paid three LASD deputies to obtain confidential police data unlawfully. Going by aliases such as Ahmed Faiq and "The Godfather," Iza reportedly boasted about shelling out $280,000 per month to the deputies. The insidious use of this illicitly acquired information was to allegedly intimidate and coerce an individual only identified as E.Z. into relinquishing a laptop containing valuable cryptocurrency assets. Accusations against Iza trace back to November 2021, with a report by the Riverside County Sheriff's Department detailing a distressing encounter between Iza and E.Z. The two had a two-year acquaintance and were previously involved in a crypto business venture. In an unnerving turn of events, while they were together in a car, Iza requested a food stop, and shortly after, two men from an SUV emerged, with one brandishing a handgun and instructing E.Z. to get into the vehicle. E.Z. managed to escape, promptly calling the authorities amid fears that Iza intended to abduct him for his crypto assets. After police intervention, Iza allegedly claimed that E.Z. had consented to pay him $300,000 for cryptocurrency dealings. However, further investigations uncovered that the two men from the SUV were former LASD deputies, with one now working as a private security contractor for Iza. Moreover, the complaint indicates that Iza enlisted a private investigator who allegedly received sensitive law enforcement data from Iza. The FBI later unearthed that an LASD deputy, implicated in receiving payments from Iza, had issued a search warrant involving E.Z.'s phone number, despite the case having no ties to him. Iza purportedly facilitated payments to LASD deputies via Zort and other businesses owned by his then-girlfriend, with payments occasionally reaching $200,000. The accusations against Iza extend beyond bribery and extortion. Additional testimonies relay that Iza and E.Z. reportedly invaded another individual's home, with Iza masquerading as an FBI agent. In this incident, Iza allegedly brandished a gun, compelled the victim to surrender a laptop harboring cryptocurrency, and demanded the password. Facing charges of conspiracy against rights and tax evasion, prosecutors claim that Iza concealed receiving tens of millions of dollars and omitted reporting any income taxes from 2020 to 2022. In sum, the unfolding allegations against Adam Iza underscore the murky realm of crypto-sector criminality, illuminating the critical need for diligent regulatory oversight and ethical conduct within the blockchain space. Such incidents serve as a stark reminder for industry participants and regulators to remain vigilant against nefarious actors seeking to exploit the burgeoning crypto landscape for illicit gains.