Crypto influencer sentenced to 45 months in jail for wire fraud

Thomas John Sfraga, also called “TJ Stone,” obtained 45 months in jail for wire fraud and was ordered to pay greater than $1.3 million in forfeiture as a part of a scheme concentrating on crypto buyers.

In a March 14 discover, the US Justice Division stated Sfraga was sentenced within the US District Court docket for the Jap District of New York (EDNY) for wire fraud following a Might 2024 responsible plea. Court docket filings acknowledged that the influencer and podcaster claimed he was the proprietor of companies — together with Vandelay Contracting, a reputation primarily based on a operating joke from the tv sequence Seinfeld — and the emcee of many crypto occasions in New York Metropolis.

“[…] Sfraga satisfied a sufferer to spend money on a fictitious cryptocurrency ‘digital pockets,’” stated the Justice Division. “He promised the victims returns on their investments as excessive as 60% in three months. In actuality, nevertheless, Sfraga used the cash entrusted to him by the victims for his personal profit, to pay bills, and to pay earlier victims and enterprise associates.”

Sfraga’s case was certainly one of many involving crypto-related crimes persevering with to be pursued within the jurisdiction following the appointment of John Durham as interim US Legal professional by President Donald Trump. Braden John Karony, former CEO of SafeMoon, who additionally faces EDNY felony expenses, requested in February that his felony trial for securities fraud conspiracy, wire fraud conspiracy and cash laundering conspiracy be pushed primarily based on the administration’s strategy to crypto enforcement.