Thomas John Sfraga, known as “TJ Stone,” entered a guilty plea to wire fraud charges Thursday in federal court in Brooklyn.
According to the U.S. Department of Justice, Sfraga is accused of defrauding investors by promising returns of up to 60% 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, defrauding him of more than $1.3 million of his hard-earned life savings,” said Breon, U.S. Attorney for the Eastern District of New York. Peace commented on the incident.
A throwback to “Seinfeld”
In addition, Sfraga claimed ownership of “Vandlay Contracting Corp.” Build Strong Homes LLC is a company with a name reminiscent of the fictional company 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 fraud extended to cryptocurrency staking, the process of using digital assets to support blockchain networks and generate potential profits through yield. . According to a December 2023 FBI complaint, Mr. Sfraga misrepresented the risks associated with staking cryptocurrencies to potential investors, claiming it was “risk-free” and “iron-clad conditions.” .
Sfraga, whose career includes real estate development, media relations, podcasting and hosting cryptocurrency events in New York, currently faces up to 20 years in prison. He was also ordered to pay $1.33 million in restitution.
