Crypto Personality “TJ Stone” Pleads Guilty to Wire Fraud

Thomas John Sfraga, known as “TJ Stone,” entered a guilty plea to fraud charges Thursday in a Brooklyn federal court.

According to the US Department of Justice, Sfraga was accused to deceive investors with the promise of returns of up to 60% within three months through a non-existent cryptocurrency digital wallet. Instead of keeping these promises, he allegedly diverted these funds for personal use and to appease previous victims of his fraudulent activities.

“For years, Sfraga brazenly lied to friends, neighbors and investors to swindle out of more than $1.3 million of their hard-earned life savings,” Breon Peace, the U.S. attorney for the Eastern District of New York, commented on the case .

Return to ‘Seinfeld’

Additionally, Sfraga claimed ownership of “Vandelay Contracting Corp.” and “Build Strong Homes LLC,” companies with names reminiscent of a fictional business from the TV show “Seinfeld.” This fictitious reference was part of his strategy to attract investors to finance non-existent construction projects.

An FBI investigation revealed that Sfraga’s fraudulent activities extended to cryptocurrency episode, a process in which digital assets are used to support a blockchain network, offering potential returns through returns. According to a December 2023 FBI grievanceSfraga misrepresented the risks of staking cryptocurrencies to potential investors, claiming that it was an “ironclad situation” with “no risk.”

Sfraga, whose background includes real estate development, media relations, podcasting and hosting cryptocurrency events in New York, now faces up to 20 years in prison. He is also ordered to pay restitution of $1.33 million.

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