Crypto Businessman And Former Deputy Admit To Federal Crimes

According to Cointelegraph, a cryptocurrency entrepreneur and a former Los Angeles County Sheriff's Department (LASD) deputy have confessed to federal offenses, including conspiracy, civil rights violations, and tax evasion. The Department of Justice revealed the plea agreements on January 17, highlighting the involvement of Adam Iza, 24, known as the “crypto godfather” and founder of the Zort crypto trading platform, in a scheme characterized by intimidation, extortion, and fraud. Eric Chase Saavedra, 41, a former LASD deputy and task force officer, exploited law enforcement resources to support Iza’s illicit activities. Court documents indicate that Iza employed off-duty LASD deputies as personal enforcers to target business competitors and perceived threats. Saavedra, using his credentials as a deputy and a task force officer with the US Marshals Service, unlawfully accessed sensitive law enforcement databases, fabricated search warrant affidavits, and misused his badge to assist Iza’s vendettas. In one notable incident, Iza attempted to steal a laptop he believed contained over $100 million in cryptocurrency. Prosecutors allege Saavedra obtained a search warrant in January 2022 under false pretenses, claiming the target was involved in a firearms investigation. Saavedra provided the victim’s location to Iza, who dispatched armed individuals to break into the victim’s home. The attempt was thwarted when the victim fired a warning shot, after which Iza reportedly sent the victim a video of the failed robbery. Prosecutors have detailed several other violent acts associated with the scheme. In August 2021, LASD deputies allegedly held a victim at gunpoint at Iza’s residence, coercing a $25,000 bank transfer. In October 2021, Iza personally forced another victim to transfer $127,000 while holding them at gunpoint. Saavedra also ran a private security firm, Saavedra & Associates LLC, employing off-duty deputies. Iza reportedly paid $100,000 monthly between 2021 and 2024 for continuous security services. Beyond the alleged extortion activities, Iza’s operations included financial fraud. Between 2020 and 2022, he is accused of defrauding Meta Platforms Inc., stealing over $37 million by accessing business accounts and associated credit lines. Both Iza and Saavedra have also admitted to federal tax crimes. Iza allegedly evaded $6.7 million in taxes for 2021, while Saavedra failed to report $373,146 in income. Iza, who has been in federal custody since September 2024, could face up to 35 years in prison. Saavedra, who resigned from LASD, faces up to 13 years. Both are expected to appear in federal court in Los Angeles soon. US Attorney Martin Estrada stated, “The conduct admitted to in these plea agreements is deeply disturbing and cannot be tolerated.” He expressed gratitude for the cooperation of Sheriff Robert Luna and the Los Angeles County Sheriff’s Department in addressing corruption and upholding civil rights.