Thomas Daniels
Thomas John Sfraga, widely known in cryptocurrency circles as “TJ Stone,” has pleaded guilty to wire fraud charges in a Brooklyn federal court on Thursday.
According to the U.S. Department of Justice, Sfraga misled investors with promises of up to 60% returns within three months through a non-existent cryptocurrency digital wallet. Instead of delivering on these promises, he allegedly diverted the funds for personal use and to appease previous victims of his fraudulent schemes.
“For years, Sfraga brazenly lied to friends, neighbors, and investors to swindle over $1.3 million of their hard-earned life savings,” stated Breon Peace, U.S. Attorney for the Eastern District of New York.
Throwback to ‘Seinfeld’
Sfraga also purported ownership of “Vandelay Contracting Corp.” and “Build Strong Homes LLC,” companies with names evocative of a fictional business from the television show “Seinfeld.” This fictitious reference was part of his ploy to attract 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 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, falsely claiming it was an “ironclad situation” with “no risk.”
With a background in real estate development, media relations, podcasting, and hosting cryptocurrency events in New York, Sfraga now faces up to 20 years in prison. He has also been ordered to pay $1.33 million in restitution.
