Crypto personality ‘T.J. Stone’ pleads guilty to wire fraud

Thomas John Sferraja, known as “TJ Stone,” pleaded guilty to fraud charges in federal court in Brooklyn on Thursday.

According to the US Department of Justice, he was a traveler Accused By deceiving investors by promising returns of up to 60% within three months through a digital cryptocurrency wallet that does not exist. Instead of fulfilling these promises, he allegedly diverted these funds for personal use and to appease previous victims of his fraudulent activities.

“For years, Sferaja brazenly lied to friends, neighbors and investors out of more than $1.3 million of their hard-earned savings,” Brion Pace, US Attorney for the Eastern District of New York, commented on the case.

Back to “Seinfeld”

In addition, Svraja claimed ownership of Vandelay Contracting Corp. and “Build Strong Homes LLC,” companies with names reminiscent of a fictional work from the TV show “Seinfeld.” This fake reference was part of his strategy to attract investors to finance non-existent construction projects.

An FBI investigation revealed that Sfraga's fraudulent activities extended to cryptocurrency staking, a process in which digital assets are used to support a blockchain network, providing potential returns through royalties. According to the FBI in December 2023 complaintSfraga misrepresented the risks involved in betting on cryptocurrencies to potential investors, claiming that it was a “strict situation” with “no risks.”

Safragha, whose background includes real estate development, media relations, podcasting, and hosting cryptocurrency events in New York, now faces up to 20 years in prison. He was also ordered to pay damages amounting to $1.33 million.

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