The US Department of Justice (DOJ) has announced a crypto podcaster and online personality known as T.J. Stone has been sentenced to prison on a count of wire fraud. The convict allegedly swindled several unsuspecting victims of over $2 million in an elaborate investment scam.
Crypto Influencer Swindles Victims Of Over $2 Million
According to a statement by the DOJ, Eastern District of New York, Thomas John Sfraga, popularly known as T.J. Stone, presented himself to society as an established serial entrepreneur between 2016-2022 with multiple businesses in real estate, podcasting, media, and cryptocurrency.
Using this false image, the felon was able to solicit money from individuals in Brooklyn, Staten Island, and Long Island. T.J. Stone deceived his eventual victims into believing these funds were for investment in real estate and certain crypto projects, with his most prominent businesses being Build Strong Homes LLC and Vandelay Contracting Corp.
In particular, he collected a $100,000 loan for a supposed start-up construction firm, while also convincing another individual to invest in a non-existent crypto wallet that promised a 60% yield in three months. However, the DOJ reports T.J. Stone used these investments for personal expenses, and paid earlier victims and partners to maintain a mirage of running an actual business. In reality, Stone swindled a minimum of 17 victims of $2 million.
Commenting on the convict’s actions, Attorney General of the Eastern District of New York, John Durham said:
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.
Following an investigation into his shady actions, Stone fled to Arizona under a false name but was eventually apprehended in Las Vegas. In May 2024, Mr. Sfraga pleaded guilty to charges of wire fraud.
Penalties And Compensations
Following the ruling of United States District Judge Frederic Block on March 13, Stone has been sentenced to 45 months in prison, and below the maximum sentence for wire fraud at 240 months. In addition, the convict is to pay $1,337,000 in forfeiture with a restitution amount to victims yet to be determined.
In other news, the general crypto market is presently experiencing an uptick with the total market cap rising by 2.12%. Bitcoin is up by 3.21% trading above $84,000 with its market cap now around $1.67 trillion. Meanwhile, prominent altcoins such as Ethereum (ETH), XRP, and Solana (SOL) have also gained by 1.22%, 5.64%, and 7.21% in the past 24 hours.
