Crypto figure's ex-girlfriend pleads guilty to tax evasion

Iris Ramaya Au, the ex-girlfriend of Adam Iza, known as the crypto "Godfather," has pleaded guilty to a federal criminal tax charge for failing to report over $2.6 million in illicit gains from her ex-boyfriend's criminal activities.

Au admitted to filing a false tax return, acknowledging that she did not disclose the millions she received from Iza's fraudulent schemes, which included obtaining Facebook and Meta advertising accounts and credit fraud.

At Iza's direction, Au set up shell companies and bank accounts to launder the illicit funds, which were used for bribing Los Angeles deputies, purchasing luxury items, and investing in cryptocurrency.

Iza, who founded the Zort crypto trading platform, has also pleaded guilty to multiple charges, including conspiracy, wire fraud, and tax evasion, and faces up to 35 years in prison.

As part of her plea deal, Au could face up to three years in federal prison, with her sentencing hearing pending.

In a similar vein, experts note that such incidents mirror other high-profile crypto fraud cases, such as the FTX (CRYPTO:FTT) scandal, where illicit activities led to substantial financial losses.

Iza's involvement in multiple illicit schemes from 2020 to 2024 resulted in millions of dollars in unreported income, further complicating the case.

The use of shell corporations and bank accounts to conceal these funds demonstrates the sophisticated methods employed by individuals involved in such crimes.

Moreover, the bribery of Los Angeles deputies to obtain private security and confidential law enforcement information adds another layer of complexity to the case.

The acquisition of around $16 million in cryptocurrency with these illicit funds also raises questions about the role of digital currencies in facilitating financial crimes.

Prosecutors revealed that approximately $1 million of these funds were used to bribe Los Angeles deputies, while nearly $10 million was spent on recreational activities.

Iza's sentencing is scheduled for June 16, marking a key moment in the case.