FBI accuses crypto exec of paying LA cops to extort victim’s digital assets

The founder of a cryptocurrency trading platform is accused of paying Los Angeles police officers to help him extort digital assets from a victim.

In a complaint filed by the Federal Bureau of Investigation, Adam Iza is accused of bribing three Los Angeles Sheriff’s Department deputies to request police data and serve suspicious search warrants against a business associate identified only as EZ in an attempt to extort cryptocurrency.

Iza, who founded crypto trading platform Zort Inc., allegedly paid deputies up to $280,000 a month and used the information he obtained to threaten EZ after a failed kidnapping attempt in Riverside County in November 2021.

EZ, who had known Iza for more than two years, claimed Iza forced two men, including a former sheriff’s deputy, into an SUV at gunpoint, according to a Riverside County Sheriff’s Department report reviewed by the FBI. EZ was able to escape and contacted law enforcement.

But Iza told police that she feared for her safety and called the men as bodyguards.

The FBI report added that Iza hired a private investigator to follow EZ and sent him images of sensitive law enforcement data, including a “GPS search warrant” for a phone number belonging to the victim.

After the failed kidnapping, EZ claimed to have received messages from unknown numbers containing images of his personal information retrieved from police databases.

According to the complaint, the messages also included images of his family, increasing his intimidation efforts. The harassment continued and EZ claimed Iza pressured him into handing over a laptop that allegedly contained cryptocurrency.

Iza is also accused of blackmailing another victim by posing as an FBI officer and stealing a laptop containing crypto while holding the victim at gunpoint for the password.

Iza is also accused of evading taxes by hiding millions of dollars in income, some of which came from cryptocurrency transactions. Iza and his associates allegedly raised more than $30 million between 2020 and 2022, transferred the money through shell companies, and used the money to buy luxury items such as cars and cover the rent of a mansion in Bel Air.

Prosecutors charged Iza with conspiracy against rights and tax evasion. He is scheduled to appear in court on October 8.

Crypto demand fuels crime spree

Unfortunately, such cases are not uncommon in the crypto world; The sector also has its share of extortion and kidnapping incidents. As the value of cryptocurrencies like Bitcoin continues to rise, they have become a prime target for criminals.

As previously reported by Crypto.news, in August, Malaysian police were searching for four men who demanded and received a $1.2 million crypto ransom from the victim’s relatives.

In a separate case, authorities in Hong Kong arrested two Kidnappers who demanded 66,000 USDT as ransom.

Last year, a cryptocurrency portfolio manager of a Dubai-based company was kidnapped in Spain, and the criminals demanded 1 million euros as ransom in cash and cryptocurrency.

Meanwhile, in July, a foreigner was robbed and killed in the Solomianskyi district of Kiev, Ukraine, in exchange for 3 Bitcoins.