Ex-Girlfriend of Crypto 'Godfather' Pleads Guilty to $2.6 Million Tax Evasion Charge

Iris Ramaya Au, the ex-girlfriend of notorious crypto fraudster Adam Iza, known as the "Crypto Godfather," has pleaded guilty to a federal criminal tax charge related to the failure to report over $2.6 million in illicit gains derived from her former partner’s criminal activities. The plea was made public in a statement from the U.S. Department of Justice on March 5.

The Allegations

Au admitted to submitting a false tax return by failing to report more than $2.6 million she received through Iza's criminal schemes. The Justice Department's statement outlined how, between 2020 and 2023, Au transferred these illicit funds to her personal bank accounts, which she used for a variety of luxurious and illegal purposes.

Iza, who was arrested for his role in multiple fraudulent activities, orchestrated numerous illegal operations, including obtaining and selling access to Facebook and Meta advertising accounts. These schemes generated millions of dollars in unreported income. At Iza's direction, Au established shell companies and opened bank accounts under their names to facilitate the illegal transactions.

The Role of Iris Ramaya Au

Au's involvement extended far beyond simply being a passive recipient of illicit funds. She actively participated in the creation of the fraudulent corporate structures that allowed Iza to launder his criminal proceeds. According to the Justice Department, Au used the funds from these illegal activities to pay approximately $1 million in bribes to Los Angeles County deputies, who provided private security services for Iza. In addition, she used the money to purchase luxury real estate, cars, jewelry, and clothing, while also funding other recreational activities that totaled nearly $10 million.

The couple also used their ill-gotten earnings to acquire around $16 million in cryptocurrency, further complicating their financial crimes.

Adam Iza's Criminal Activities

Iza, who also founded the Zort crypto trading platform, pleaded guilty in January to several charges, including conspiracy against rights, wire fraud, and tax evasion. He admitted to orchestrating a wide array of fraudulent activities, from hacking Facebook and Meta advertising accounts to bribing law enforcement officials for private security and confidential information. Iza's actions were not just financially damaging but also involved significant manipulation and abuse of his relationship with law enforcement.

In addition to his involvement in financial crimes, Iza is accused of instructing deputies at the Los Angeles County Sheriff’s Department to target individuals with whom he had personal and financial disputes, further highlighting the extent of his criminal influence.

Legal Consequences

Under her plea agreement, Au now faces up to three years in federal prison for her role in the illegal activities. Meanwhile, Iza faces a far steeper sentence. He could be sentenced to up to 35 years in prison for his involvement in the complex fraud scheme, with his sentencing set for June 16.

The case sheds light on the increasing scrutiny surrounding the intersection of cryptocurrency and financial crime, as regulators ramp up efforts to combat money laundering, fraud, and tax evasion within the digital asset space.

As both Au and Iza await sentencing, this high-profile case highlights the far-reaching consequences of engaging in crypto-related fraud and the severe penalties that come with attempting to launder illicit funds and evade taxes.