Crypto 'Godfather' Sentenced to Over 6 Years for Fraud and Abuse of Power
Adam Iza, a 26-year-old self-proclaimed crypto 'Godfather,' has been sentenced to an additional 78 months in prison for a string of crimes, including hiring off-duty Los Angeles sheriff's deputies to harass his adversaries, orchestrating a $37 million fraud against Meta, and evading taxes through cryptocurrency custodians. U.S. District Judge Percy Anderson also ordered Iza to pay $23.4 million in restitution. This sentence runs concurrently with a 15-year term he received last month for an attempted Bitcoin robbery.
Between August 2021 and April 2022, Iza hired five former Los Angeles County Sheriff's Department deputies as personal security, using them to intimidate and threaten individuals he had disputes with. The deputies were convicted for their roles in these activities, with sentences ranging from 12 to 63 months. Iza admitted to conspiring with them to obtain confidential law enforcement records and court-authorized search warrants to track down his targets.
The fraud against Meta involved Iza gaining access to business manager accounts and the associated lines of credit, which he then sold to advertising companies. Meta clients were billed for advertising they never purchased, leading to $37 million in losses that Meta absorbed. Iza admitted to receiving at least $36.3 million in gross income through 2023 and causing the IRS a loss of $13.3 million by failing to file corporate tax returns. He hid the proceeds by concealing his ownership of Zort, his crypto trading platform, and moving corporate income to cryptocurrency custodians.
Iris Rabaya Au, Iza's former girlfriend, was sentenced to 18 months in prison for failing to report more than $2.6 million she received from Iza's activities. She was ordered to pay $1.5 million in restitution and forfeit a fleet of luxury cars, designer handbags, and other assets.