Thomas John Sfraga, referred to as “TJ Stone,” entered a responsible plea to wire fraud fees in a Brooklyn federal court docket on Thursday.
In line with the U.S. Division of Justice, Sfraga was accused of deceiving traders with the promise of as much as 60% returns inside three months by way of a non-existent cryptocurrency digital pockets. As an alternative of fulfilling these guarantees, he allegedly diverted these funds for private use and to placate earlier victims of his fraudulent actions.
“For years, Sfraga overtly lied to pals, neighbors, and traders to swindle over $1.3 million of their hard-earned life financial savings,” commented Breon Peace, the U.S. legal professional for the Japanese District of New York, on the case.
Brooklyn Man and Cryptocurrency Persona “T.J. Stone” Pleads Responsible to Wire Fraud
Defendant Admits Bilking Actual Property and Cryptocurrency Traders Out of Over $1.3 Million Utilizing Enterprise Named After Fictitious Seinfeld Firm@NewYorkFBI https://t.co/ZaIITsS4YQ
— US Lawyer EDNY (@EDNYnews) Might 17, 2024
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Throwback to ‘Seinfeld’
Moreover, Sfraga claimed possession of “Vandelay Contracting Corp.” and “Construct Robust Properties LLC,” corporations with names paying homage to a fictional enterprise from the tv present “Seinfeld.” This fictitious reference was a part of his technique to lure traders into funding non-existent building tasks.
An FBI investigation revealed that Sfraga’s fraudulent actions prolonged into cryptocurrency staking, a course of the place digital property are used to help a blockchain community, providing potential returns by way of yields. In line with a December 2023 FBI criticism, Sfraga misrepresented the dangers concerned in cryptocurrency staking to potential traders, claiming it was an “ironclad scenario” with “no threat.”
Sfraga, whose background contains actual property improvement, media relations, podcasting, and internet hosting cryptocurrency occasions in New York, now faces as much as 20 years in jail. He’s additionally ordered to pay restitution amounting to $1.33 million.
Learn extra: Oklahoma passes invoice defending rights to self-custody crypto