Crypto ‘Godfather’s’ Ex-Girlfriend Pleads Guilty to Tax Fraud in $2.6 Million Case

The former girlfriend, Iris Ramaya Au, of the popularly known crypto“Godfather” Adam Iza, has pled guilty to a Federal Criminal Tax charge for failing to disclose over $2.6 million in illegal gains acquired through her ex-boyfriend’s fraudulent activities. The U.S. Department of Justice took the case on 5 March to inquire about Iza’s million-dollar scams.

The Fraudulent Empire of Adam Iza

Adam Iza, who previously confessed to running many illicit businesses between 2020 and 2024, built his criminal empire by fraudulently obtaining Facebook and Meta advertisement accounts and committing credit fraud. His company earned millions in untaxed income, which he laundered through several intermediaries, including investing in cryptocurrency and designer brands and even bribing police officers.

In January, Iza pleaded guilty to multiple charges, which included conspiracy against rights, wire fraud, and tax fraud. Among his crimes, he contracted with deputies working in the Los Angeles County Sheriff’s Department to provide personal security and to acquire confidential law enforcement information on individuals with whom he had personal and financial disputes.

Au’s Role in the Criminal Operation

At Iza’s direction, Au played a crucial role in laundering and managing the illicit funds. She set up shell companies and opened multiple bank accounts in their names, into which money from Iza’s illegal activities was deposited. Between 2020 and 2023, she deposited more than $2.6 million into her bank accounts, failing to report the funds to the tax authorities.

In addition, Au used this money to finance a life of extravagance, such as renting mansions and purchasing luxury vehicles, jewelry, and designer apparel. Court documents also indicated that she was involved in bribing Los Angeles deputies by paying them anywhere from approximately $1 million for special treatment.

Beyond personal luxuries, the illicit funds were also used for “recreational activity” valued at nearly $10 million and to acquire around $16 million in cryptocurrency, further expanding the financial web of Iza’s fraudulent empire.

Legal Consequences and Sentencing

As part of her plea deal, Au pleaded guilty to filing a false tax return and failure to report the millions she received from Iza’s criminal venture. The crime can send her to federal prison for up to three years, and her sentencing hearing remains to be set.

Meanwhile, Iza, the founder of the Zort crypto trading platform, is to be punished severely. With his multiple felony charges of felonies, he may be sentenced to serve 35 years in prison. His sentencing is scheduled for June 16.

Broader Implications

This case is a good example of the increasing focus on cryptocurrency-based financial fraud and crimes. As law enforcement agencies ramp up efforts to crack down, cases such as Iza’s are a reminder to criminals who engage in criminal financial activity. The application of cryptocurrency in money laundering and tax evasion continues to be a concern for regulators and law enforcement agencies across the globe.

With both Iza and Au facing the possibility of jail time, the case is yet another reminder of how even individuals who are closest to criminals among celebrities are not above the law. With the market for digital assets continuing to expand, authorities are eager to clamp down on financial improprieties in the cryptocurrency market.