Crypto Godfather Scandal: Ex-Girlfriend Pleads Guilty in Tax Fraud Case
Iris Ramaya Au, the former girlfriend of self-proclaimed crypto Godfather Adam Iza, has pleaded guilty to a federal tax charge in connection with Iza’s illicit financial schemes.
The U.S. Justice Department announced on March 5 that Au admitted to failing to report over $2.6 million in illegal income derived from Iza’s fraudulent activities.
Crypto Godfather Criminal Enterprise
In January, the self-proclaimed crypto Godfather pleaded guilty to multiple charges, including conspiracy against rights, wire fraud, and tax evasion. His schemes, spanning from 2020 to 2024, involved fraudulently acquiring and selling access to Facebook and Meta advertising accounts, as well as illegally obtaining credit. According to the Justice Department, Iza generated millions of dollars in unreported income through these unlawful operations.
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To facilitate the movement of illicit funds, Iza directed Au to establish shell corporations and open bank accounts under false identities. These accounts were used to funnel money derived from his fraudulent activities.
Au’s Role in the Scheme
As a key participant in Iza’s financial operations, Au helped obscure the origins of stolen funds. She transferred substantial amounts into personal bank accounts between 2020 and 2023. Prosecutors revealed that the ill-gotten money was used to finance an extravagant lifestyle, which included approximately $1 million in bribes to Los Angeles County deputies. Additionally, funds were spent on luxury cars, real estate, designer clothing, and jewelry.
Beyond material indulgences, the crypto Godfather and Au allegedly spent around $10 million on extravagant leisure activities and invested approximately $16 million in cryptocurrency.
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Corruption and Law Enforcement Bribery
One of the most alarming aspects of the case involves allegations of corruption within law enforcement. Prosecutors assert that Iza paid deputies from the Los Angeles County Sheriff’s Department for security services and to obtain confidential law enforcement information. He also allegedly sought unauthorized search warrants targeting individuals with whom he had financial or personal disputes.
As part of her plea deal, Au has acknowledged her role in the financial scheme and faces a potential sentence of up to three years in federal prison.
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Meanwhile, the crypto Godfather, who also founded the Zort crypto trading platform, faces significantly harsher penalties. He could be sentenced to up to 35 years in prison at his upcoming sentencing on June 16. Legal experts suggest that his level of cooperation with authorities could influence the severity of his sentence.
