Thomas John Sfraga, often known as “TJ Stone,” acquired 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 focusing on crypto traders.
In a March 14 discover, the US Justice Division said Sfraga was sentenced within the US District Courtroom for the Jap District of New York (EDNY) for wire fraud following a Could 2024 responsible plea. Courtroom 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 collection Seinfeld — and the emcee of many crypto occasions in New York Metropolis.
“[...] Sfraga satisfied a sufferer to put money into 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, nonetheless, 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 prison prices, requested in February that his prison trial for securities fraud conspiracy, wire fraud conspiracy and cash laundering conspiracy be pushed primarily based on the administration’s method to crypto enforcement.
The “Seinfeldian” scheme, based on Durham, was not the primary time the crypto business was linked to the favored sitcom. Comic Larry David, co-creator of the present, starred in a Tremendous Bowl advert for defunct cryptocurrency alternate FTX in 2022. He later said he was “an idiot” for endorsing the corporate and misplaced some huge cash after the worth of particular tokens dropped.
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Since Trump took workplace on Jan. 20, some high-profile defendants in prison circumstances involving cryptocurrency have reportedly been wanting into appealing to the US president for a pardon. Amongst these reportedly looking for pardons had been former FTX CEO Sam Bankman-Fried, presently serving a 25-year sentence following a 2023 conviction, and former Binance CEO Changpeng Zhao, who served a four-month sentence in 2024 — although he denied reports of a possible pardon.
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