Crypto ‘Godfather’ Adam Iza’s Ex-Girlfriend Admits to $2.6M Tax Fraud

YEREVAN (CoinChapter.com) — Iris Ramaya Au, the former girlfriend of Adam Iza, known as the crypto Godfather, admitted to filing a false tax return for failing to report $2.6 million in illicit income. The U.S. Justice Department confirmed her guilty plea in a March 5 statement.

According to prosecutors, Au obtained these funds from Iza’s criminal operations between 2020 and 2023. She transferred the money into her personal bank accounts while knowingly failing to report it.

Iris Ramaya Au Pleads Guilty to $2.6M Tax Fraud Linked to Crypto ‘Godfather’ Adam Iza. Source: U.S. Attorney’s Office, Central District of California. Adam Iza’s Crypto Fraud Schemes

Adam Iza, the founder of Zort crypto trading platform, pleaded guilty in January to several charges, including wire fraud, tax evasion, and conspiracy against rights. He admitted to fraudulently obtaining Facebook and Meta advertising accounts, then selling access to these accounts for profit.

Crypto ‘Godfather’ Adam Iza and LASD Detective Eric Saavedra Plead Guilty to Civil Rights Violations and Tax Crimes. Source: U.S. Attorney’s Office, Central District of California

The Justice Department stated that Iza accumulated millions in unreported income through these schemes. He directed Au to create shell corporations and open bank accounts to store and move the funds.

Bribery, Luxury Spending, and Crypto Investments

Authorities revealed that Au and Iza used the fraudulent funds to finance various expenses, including over $1 million in bribes to Los Angeles deputies. The money also went toward real estate, luxury cars, jewelry, and designer clothing.

In addition, the funds were used for recreational activities worth nearly $10 million and to acquire around $16 million in cryptocurrency. Prosecutors stated that Iza paid Los Angeles County Sheriff’s deputies for private security and asked them to obtain search warrants and confidential law enforcement information about people he had disputes with.

Legal Consequences and Sentencing

Au admitted to transferring the $2.6 million into her personal accounts while failing to report it. She now faces a federal prison sentence of up to three years.

Iza, who pleaded guilty to his charges, could receive a 35-year sentence. His sentencing is set for June 16.

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