Corrupt Cops and Blood Money: Where the Cryptocurrency Industry Is Going

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Threats and blackmail have long been commonplace in the world of digital assets.

The FBI accuses a Los Angeles resident of orchestrating a major cryptocurrency fraud and police corruption, using them to threaten and pressure competitors. According to local authorities, Adam Iza, also known as "The Godfather" and creator of the investment platform Zort, allegedly made money from cybercrimes and evaded tens of millions of dollars in taxes.

The Zort platform was advertised as an innovative tool with built-in artificial intelligence for smart trading in the crypto market, but many investors eventually lost their investments, while Iza and his girlfriend spent money on expensive purchases.

During the investigation, the FBI found that Isa paid bribes to several current sheriff's deputies from the Los Angeles Police Department (LASD). These police officers provided Iza with "services" for espionage, extortion and intimidation of opponents, for which they received hundreds of thousands of dollars. For example, in January 2022, using his connections in the police, Iza obtained illegal access to information about the location of the phone of one of his victims.

One of Isa's main targets was Enzo Zelocchi, an "actor" who had previously been assaulted and robbed. In March 2022, three people reportedly broke into Zelokki's home to gain access to his cryptocurrency assets. Then Zelocchi opened fire and frightened off the attackers. Later, Isa and the police working for him tried to kidnap and intimidate Zelocchi, however, he managed to avoid the attack.

The FBI indictment also mentions Isa's ex-girlfriend, Iris Au. She, according to federal agents, helped Adam run the business and spent the millions she had invested in Zort on her own needs. Au later sued Zelocchi, accusing him of stealing Iza's laptop.

According to the investigation, Adam Isa also threatened Troy Woody Jr., who is now in a Philippine prison for murder. Woody and his accomplice Mir Islam (call sign "JoshTheGod") were members of the well-known hacker group UGNazi, responsible for a number of major cyberattacks in 2012. Woody claims that Isa and Zelocchi attacked him in 2018 and stole electronic devices containing more than $200 million in cryptocurrency.

As mentioned above, Iza used bribery and blackmail to subjugate the Los Angeles Police Department and even arranged for the arrests of people he did not like on false charges. He also used cryptocurrency transfers to pay for the services of the police.

The whole story of Iza and his entourage resembles an intricate knot of connections, where each participant is intertwined with the others: former hackers, corrupt police officers, self-taught actors, and business partners hungry for power and money.

Despite the fact that at first each of them was united by common criminal interests, at different stages their paths began to diverge - betrayal, greed and personal conflicts turned allies into enemies. Now each of them is alone, facing the consequences of their own decisions and actions in this criminal network.

The accusations against Iza and his entourage underscore a dangerous trend in cybercriminal communities: the emergence of "violence as a service" services. On special channels in Telegram, it has long been possible to leave an order for an attack, arson or damage to property. This phenomenon not only blurs the lines between virtual and physical crimes, but also undermines the foundations of the rule of law, involving even those who are called upon to protect the law.

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