'Crypto Godfather' and Ex-LA Police Officer Confess to Million-Dollar Fraud

• Federal crimes expose flaws in crypto compliance
• Cryptocurrency auditing strengthens transaction security
• Misuse of credentials aggravates illicit practices

A cryptocurrency entrepreneur and a former Los Angeles County Sheriff's Office (LASD) deputy have admitted to conspiracy, human rights violations civilians and tax evasion, crimes that caught the attention of the sector.

Court records describe the entrepreneur, known as the “crypto godfather” and founder A crypto platform operator named Adam Iza allegedly recruited private security guards and off-duty agents to pressure rivals in business disputes. Among those agents was Eric Chase Saavedra, a former LASD officer who is accused of accessing restricted databases and producing false warrants to intimidate others.

The investigation claims that Iza tried to recover a laptop allegedly containing more than $100 million in cryptocurrency, encouraging Saavedra to base a search based on allegations involving firearms. The aim was to break into the home of a specific target, but the victim responded by firing a warning shot. After the incident, Iza allegedly sent a video to intensify the threat.

Other instances of extortion have also been documented, including holding people at gunpoint and demanding wire transfers. In addition, Iza was accused of defrauding a major technology company of more than $37 million. Both men admitted to tax irregularities, including Iza evading $6,7 million in taxes and Saavedra underreporting income.

The former police chief, who ran a private security company, received substantial monthly payments. Experts point out that this case reinforces the importance of strengthening crypto compliance and cryptocurrency auditing to prevent abuse of power and illicit schemes.

Iza, who has been in custody since September 2024, could face up to 35 years in prison. Saavedra, who has stepped down, faces up to 13 years and both are expected to appear soon in federal court in Los Angeles.

“The conduct admitted to in these plea agreements is deeply disturbing and cannot be tolerated,” said United States Attorney Martin Estrada. “I appreciate the cooperation of Sheriff Robert Luna and the Los Angeles County Sheriff’s Department in defending civil rights against such abuses.”