Crypto influencer sentenced to 45 months for swindling $2m from investors

Thomas John “TJ Stone” Sfraga was sentenced to the federal court for real estate scam and cryptographic investors through a company inspired by the 90s television program.

According to a press release From the American prosecutor’s office, SFRAGA was sentenced to 45 months in prison and ordered to pay nearly $ 1.4 million in state confiscation. The amount of the restitution will be announced on a later date.

Sfraga pleaded guilty of thread fraud Accusations in May 2024. He would have convinced several victims of investing in a false crypto project called “Virtual Wallet”. He promised investors of yields of up to 60% in a period of three months. In reality, there was no virtual portfolio project. Instead, SFRAGA used the money to pay expenses and to pay victims earlier as well as commercial partners, leading a PONZI program.

To deceive his victims, SFRAGA said he had several companies, including Build Strong Homes LLC and Vandelay Contracting Corp. Vandelay Contracting was named after the fictitious “Vandelay Industries” of the successful television program Seinfeld, where the character George Costanza falsely said he had interviewed for a job.

SFRAGA has also promoted to be as an entrepreneur, podcaster and defender of cryptography. He has often worked as a master of ceremonies for cryptocurrency events in New York, using his status to gain the confidence of crypto traders.

According to the press release, SFRAGA has frauded approximately 17 victims of Brooklyn, Staten Island and Long Island. He convinced them to lend him money or invest in false instruments related to real estate and crypto. A victim was waged to lend him $ 100,000 in cash to cover start -up costs for a false construction project.

The American lawyer for the Oriental District of New York, John J. Durham, said that Sfraga had caused serious financial and emotional damage to his victims, who confidence to him by showing him his promised investment returns.

“Sfraga stole friends, neighbors next to it and the parents of children who played in teams with their own children, as well as individual cryptocurrency investors,” said Durham in his statement.

Based on a recent survey carried out in the United States and Canada by the North American Securities Administration Association, the cryptocurrency and the scams on social networks were revealed Be the two main threats facing retail investors in 2025.

About 32% of the registered scams attracted victims via social media platforms like Facebook and X, while 31% were linked to messaging services, including Telegram and Whatsapp.