Los Angeles Crypto Godfather Used Deputies in $36M Fraud, IRS Records Reveal

Tatevik Avetisyan
By Tatevik Avetisyan 3 Min Read
Los Angeles Crypto Godfather Used Deputies in $36M Fraud, IRS Records Reveal

Adam Iza, a 25-year-old from Los Angeles, hired local sheriff deputies to carry out personal attacks as part of a wider crypto fraud operation, according to court records. Federal prosecutors said Iza used law enforcement officers to track, harass, and intimidate rivals.

Iza reportedly paid the deputies to perform illegal traffic stops, track people’s locations, and present fake search warrants. In one incident at his Bel Air mansion, Iza ordered armed deputies to detain rivals at gunpoint until they paid him $25,000 each.

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Crypto Godfather with LA Deputies.Source: CoinTelegraph via @RoundtableSpace on X.
        Crypto Godfather with LA Deputies. Source: @RoundtableSpace on X.

Court filings confirmed that the case became public after a tax investigation exposed unreported income linked to at least five associates. The fraud involved breached Meta business accounts, which Iza and his alleged co-conspirator from Kosovo sold with their credit lines. This activity generated an estimated $36 million.

Deputies Rodriguez and Cadman Pleaded Guilty in Crypto Fraud

David Anthony Rodriguez and Christopher Michael Cadman, both Los Angeles County sheriff deputies, pleaded guilty on July 15 to assisting Iza. Prosecutors stated that the deputies used official resources to help Iza’s crypto network carry out physical threats.

The pair reportedly received payments from Iza, though court documents have not confirmed if the funds were in cash or cryptoassets. These payments were not reported to the Internal Revenue Service (IRS), which helped build the fraud case. The IRS traced income discrepancies through audits.

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Federal sources said Iza’s criminal network also included his former girlfriend and other unnamed associates. They all faced charges related to tax fraud and crypto-related income concealment. Prosecutors linked the income to various crimes connected to Adam Iza’s crypto empire.

Court documents said Iza referred to himself as the Crypto Godfather and directed his circle of law enforcement supporters to act as personal enforcers. Legal records show that several state resources were used in these operations.

Adam Iza Spent Crypto Profits on Mansion, Cars, and Surgery

Federal filings also revealed that Iza spent millions from his crypto crime proceeds on personal luxury items. These included a Bel Air mansion, multiple Lamborghinis, and an experimental leg-lengthening surgery.

Following his arrest, Iza was granted permission to visit a surgeon under federal supervision. The court allowed him to remove implants placed during the cosmetic procedure, citing issues with prison conditions.

The investigation into the $36 million crypto scam continues, with more charges expected. The case, led by IRS Criminal Investigation and the Department of Justice, forms part of a larger 2025 trend involving crypto-related tax and law enforcement corruption.

Tatevik Crypto Journalist CoinChapter

Tatevik Avetisyan

Tatev Avetisyan is a Markets Writer and Analyst at CoinChapter, covering cryptocurrency markets, policy, and regulation. With over seven years of experience in business and marketing development, she has spent the past two years specializing in digital assets and has authored more than 2,000 articles on crypto markets and regulatory developments.She contributes as a guest writer to leading industry publications and is a prominent Web3 advocate in Armenia through Web3Armenia. Her work reflects a broader focus on artificial intelligence and Web3 technologies. Tatev maintains a diversified crypto portfolio, with Bitcoin as her primary holding above CoinChapter’s $1,000 disclosure threshold.