A former girlfriend of a cryptocurrency fraudster, known in the industry as “The Godfather,” has admitted to a federal tax charge stemming from her involvement in his illicit activities. Iris Ramaya Au, 35, is accused of failing to report more than $2.6 million in earnings obtained through her former partner’s criminal schemes.
According to the US Department of Justice (DoJ), Au’s agreement to plead guilty to a felony tax charge marks another chapter in the government’s pursuit of those benefiting from illegal cryptocurrency dealings.
Crypto Fraud Unraveled: Role in Financial Operations and Lifestyle
Authorities claim that between 2020 and 2024, Au’s former boyfriend—known only as “Iza”—orchestrated a series of fraudulent schemes, including unauthorized access to advertising accounts and credit lines from major social media companies.
These actions reportedly generated millions in unreported income for Iza, which Au then helped manage and spend. Au’s involvement extended beyond being a passive recipient of funds. She allegedly set up shell corporations and opened bank accounts to handle the incoming money.
The government asserts that these accounts were used to pay off law enforcement officers for private security services, fund luxurious lifestyles, and acquire high-value assets such as real estate, luxury vehicles, and cryptocurrency.
Over time, Au transferred more than $2.6 million from these accounts into her own personal accounts. Prosecutors also note that the funds supported recreational activities valued at nearly $10 million and helped acquire approximately $16 million in cryptocurrency.
Yet, despite receiving these substantial amounts, Au did not report the income on her federal tax returns. The IRS claims that this omission was intentional, resulting in the federal tax charge to which she has now agreed to plead guilty.
Iza’s Legal Challenges and Ongoing Investigations
Au’s plea agreement follows the earlier guilty plea of Iza, who is facing multiple charges including conspiracy against rights, wire fraud, and tax evasion.
Iza’s sentencing hearing is scheduled for later this year, where he could face up to 35 years in prison. In contrast, Au’s plea deal could lead to a sentence of up to three years in federal prison. The DoJ noted:
After pleading guilty, Au will face up to three years in federal prison. On January 30, Iza appeared before a federal judge and pleaded guilty to a first superseding information charging him with conspiracy against rights, wire fraud, and tax evasion. His sentencing hearing is scheduled for June 16, at which time he will face up to 35 years in federal prison. Iza has been in federal custody since September 2024.
Meanwhile, the agency further revealed that Investigations into the broader scheme remain ongoing, with the IRS and FBI actively involved. The Justice Department also stated that it will continue to pursue those who fail to report income from illegal sources, regardless of how the funds are obtained or spent.
Featured image created with DALL-E, Chart from TradingView
