The US Department of Justice (DOJ) has proclaimed that a cryptocurrency podcaster and internet figure known as T.J. Stone has been sentenced to imprisonment for a count of wire fraud. The offender allegedly deceived numerous unwary victims out of more than $2 million in a complex investment scheme.
Crypto Influencer Deceives Victims Out Of More Than $2 Million
As per a report by the DOJ from the Eastern District of New York, Thomas John Sfraga, commonly referred to as T.J. Stone, portrayed himself to the public as an accomplished serial entrepreneur from 2016 to 2022, operating multiple enterprises in real estate, podcasting, media, and cryptocurrency.
Leveraging this fabricated persona, the criminal successfully solicited funds from residents of Brooklyn, Staten Island, and Long Island. T.J. Stone misled his eventual victims into thinking these investments were intended for real estate ventures and specific crypto projects, with his most notable businesses being Build Strong Homes LLC and Vandelay Contracting Corp.
Specifically, he secured a $100,000 loan for a purported start-up construction firm, while persuading another individual to invest in a fictitious crypto wallet that claimed a 60% return in three months. However, the DOJ indicates that T.J. Stone utilized these investments for personal expenditures, and compensated earlier victims and partners to sustain the illusion of operating a legitimate business. In truth, Stone defrauded at least 17 victims of $2 million.
Commenting on the convict’s conduct, Attorney General of the Eastern District of New York, John Durham stated:
Sfraga ruthlessly stole from friends, neighbors, and the parents of children who participated in teams with his own children, as well as from individual cryptocurrency investors.
After an inquiry into his dubious actions, Stone fled to Arizona using a false identity but was finally apprehended in Las Vegas. In May 2024, Mr. Sfraga admitted guilt to the charges of wire fraud.
Penalties And Restitutions
Following the decision of United States District Judge Frederic Block on March 13, Stone has been sentenced to 45 months of imprisonment, falling short of the maximum penalty for wire fraud set at 240 months. Additionally, the convict is required to pay $1,337,000 in forfeiture, with a restitution amount to victims still to be established.
In related news, the overall cryptocurrency market is currently experiencing a rise, with the total market capitalization increasing by 2.12%. Bitcoin has risen by 3.21%, trading above $84,000, with its market cap now around $1.67 trillion. In the meantime, notable altcoins such as Ethereum (ETH), XRP, and Solana (SOL) have also appreciated by 1.22%, 5.64%, and 7.21% over the past 24 hours.
Featured image from iStock, chart from Tradingview
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