Thomas John Sfraga, widely recognized as “TJ Stone,” received a sentence of 45 months in prison for wire fraud and was mandated to repay over $1.3 million in confiscation as part of a scheme that targeted cryptocurrency investors.
In a notice dated March 14, the US Justice Department announced that Sfraga was sentenced in the US District Court for the Eastern District of New York (EDNY) for wire fraud following a guilty plea in May 2024. Court documents revealed that the influencer and podcaster claimed ownership of businesses—including Vandelay Contracting, a title inspired by a recurring joke from the TV series Seinfeld—and served as the host for numerous crypto events in New York City.
“[…] Sfraga persuaded a victim to invest in a fabricated cryptocurrency ‘virtual wallet,’” stated the Justice Department. “He assured the victims of returns on their investments as substantial as 60% within three months. However, in reality, Sfraga utilized the funds entrusted to him by the victims for his own advantage, to cover expenses, and to settle payments to previous victims and business partners.”
Sfraga’s situation was among several cases concerning crypto-related offenses that are still being investigated in the jurisdiction following the appointment of John Durham as interim US Attorney by President Donald Trump. Braden John Karony, the former CEO of SafeMoon, who is also facing criminal charges in EDNY, requested in February that his criminal trial for securities fraud conspiracy, wire fraud conspiracy, and money laundering conspiracy be postponed based on the government’s approach to crypto enforcement.
The “Seinfeldian” scheme, according to Durham, marked not the first instance of the crypto industry’s association with the beloved sitcom. Comedian Larry David, co-creator of the show, featured in a Super Bowl advertisement for the now-defunct cryptocurrency exchange FTX in 2022. He subsequently stated he was “an idiot” for endorsing the firm and incurred significant losses following a drop in the value of certain tokens.
Related: Why comedian TJ Miller aims to be a reliable face for Bitcoin
Since Trump assumed office on Jan. 20, several prominent defendants in criminal cases connected to cryptocurrency have reportedly been exploring the possibility of appealing to the US president for a pardon. Among those purportedly seeking pardons were former FTX CEO Sam Bankman-Fried, who is currently serving a 25-year sentence following a conviction in 2023, and former Binance CEO Changpeng Zhao, who completed a four-month sentence in 2024—although he refuted reports regarding a potential pardon.
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