Crypto personality ‘T.J. Stone’ pleads guilty to wire fraud

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

According
to
the
U.S.
Department
of
Justice,
Sfraga
was

accused
of
deceiving
investors
with
the
promise
of
up
to
60%
returns
within
three
months
through
a
non-existent
cryptocurrency
digital
wallet.
Instead
of
fulfilling
these
promises,
he
allegedly
diverted
these
funds
for
personal
use
and
to
placate
previous
victims
of
his
fraudulent
activities.

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

Throwback
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
television
show
“Seinfeld.”
This
fictitious
reference
was
part
of
his
strategy
to
lure
investors
into
funding
non-existent
construction
projects.

An
FBI
investigation
revealed
that
Sfraga’s
fraudulent
activities
extended
into
cryptocurrency

staking,
a
process
where
digital
assets
are
used
to
support
a
blockchain
network,
offering
potential
returns
through
yields.
According
to
a
December
2023
FBI

complaint,
Sfraga
misrepresented
the
risks
involved
in
cryptocurrency
staking
to
potential
investors,
claiming
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
amounting
to
$1.33
million.