| Key Points: – Thomas John Sfraga was sentenced to 45 months in prison for defrauding investors of over $2 million through fake real estate and crypto schemes. – Sfraga used fictitious companies like “Vandelay Contracting” to lure victims with promises of high returns but instead spent the money on personal expenses. |
A Brooklyn-based podcaster and cryptocurrency promoter, Thomas John Sfraga, also known as “TJ Stone,” has been sentenced to 45 months in prison for orchestrating a fraudulent investment scheme that defrauded real estate and cryptocurrency investors of more than $2 million.
The sentencing, announced by the U.S. Department of Justice (DOJ) on March 14, took place in the U.S. District Court for the Eastern District of New York (EDNY) and was overseen by Judge Frederic Block.
Brooklyn Crypto Influencer Thomas John Sfraga Sentenced for Multi-Million Dollar Fraud
According to the document, Thomas John Sfraga operated under multiple business aliases, including “Vandelay Contracting,” a name inspired by a recurring joke from the television sitcom “Seinfeld.”
Sfraga presented himself as a reputable real estate developer and cryptocurrency expert, frequently hosting and emceeing industry events in New York City to bolster his credibility. Between 2016 and 2022, Sfraga targeted at least 17 victims across Brooklyn, Staten Island, and Long Island, convincing them to invest in fraudulent ventures.
These included fictitious real estate development projects and a non-existent cryptocurrency “virtual wallet,” which TJ Stone falsely claimed would yield returns of up to 60% within three months. Instead of investing the funds as promised, he diverted the money for personal expenses and to repay earlier victims in a Ponzi-style operation.
Fake Investments and Ponzi Scheme Lead to Prison Time
Sfraga pleaded guilty to wire fraud charges in May 2024. In addition to his prison sentence, he was ordered to forfeit $1,337,700. The final amount of restitution owed to victims will be determined at a later date.
U.S. Attorney John J. Durham condemned Sfraga’s actions, emphasizing the harm he inflicted on those who trusted him.
“Sfraga callously stole from friends, next-door neighbors, and the parents of children who played on teams with his own children, as well as from individual cryptocurrency investors,” Durham stated in a press release.
As law enforcement intensified its scrutiny, Sfraga fled to Arizona, assuming a false identity to evade capture. His attempt to escape justice ended in Las Vegas, where he was arrested at the Wynn Casino after failing to pay a bill.
His conviction is part of a broader crackdown on cryptocurrency-related fraud in New York. The DOJ and financial regulators have been actively pursuing fraudulent schemes in the digital asset space.
Crackdown on Cryptocurrency Scams Intensifies
TJ Stone’s sentencing comes amid increased enforcement actions against cryptocurrency-related fraud. Other notable cases include former SafeMoon CEO Braden John Karony, who has sought delays in his trial due to shifting regulatory stances. The crackdown has intensified following the appointment of John Durham as interim U.S. Attorney by President Donald Trump.
Meanwhile, speculation has emerged regarding potential presidential pardons for high-profile figures in the crypto sector. Former FTX CEO Sam Bankman-Fried, currently serving a 25-year sentence, and ex-Binance CEO Changpeng Zhao, who completed a four-month term in 2024, are rumored to be considering appeals. However, Zhao has publicly denied any interest in seeking a pardon.
Thomas John Sfraga’s case shows growing concerns about fraud within the cryptocurrency industry. A recent survey conducted by the North American Securities Administrators Association identified cryptocurrency and social media scams as the top threats to retail investors in 2025.
According to the report, 32% of recorded scams originated from social media platforms like Facebook and X, while 31% were linked to messaging services such as Telegram and WhatsApp.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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