Crypto influencer sentenced to 45 months in jail for wire fraud

Thomas John Sfraga, also referred to 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 buyers.

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 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 one in all 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.