Key Takeaways:
- Crypto influencer faces a jail sentence for deceiving property and digital asset backers.
- The scheme unfolded over years utilizing false enterprise fronts and exploited private ties.
- The case reveals the danger of investing with out unbiased verification.
Thomas John Sfraga, generally known as T.J. Stone, was sentenced to 45 months in federal jail for wire fraud after defrauding actual property and cryptocurrency buyers out of over $2 million, in accordance with the U.S. Division of Justice on Friday.
Brooklyn Podcaster and Cryptocurrency Character Generally known as “T.J. Stone” Sentenced to 45 Months’ Imprisonment https://t.co/lbWYVDHqtz (Introduced with @NewYorkFBI)
— US Lawyer EDNY (@EDNYnews) March 14, 2025
In accordance with a press launch from the U.S. Division of Justice, Sfraga defrauded actual property and cryptocurrency buyers out of greater than $2 million.
He was additionally ordered to forfeit $1,337,700, with restitution to be decided later.
His sentencing befell in Brooklyn, presided over by U.S. District Choose Frederic Block.
The case, led by the U.S. Lawyer’s Workplace for the Jap District of New York and the FBI’s New York Area Workplace, uncovered a years-long fraudulent scheme through which Sfraga exploited private relationships and investor belief to fund a collection of sham companies.
T.J. Stone’s Fraud Focused Shut Contacts
U.S. Lawyer John J. Durham condemned Sfraga’s actions, stating in a press launch that he “stole from associates, neighbors, and even mother and father of kids who performed on sports activities groups together with his personal youngsters.”
Sfraga ran fraudulent companies, together with Construct Sturdy Properties LLC and Vandelay Contracting Corp.—a reputation referencing the fictional “Vandelay Industries” from Seinfeld.
Beneath the alias “T.J. Stone,” he portrayed himself as an actual property developer, media character, and cryptocurrency professional, even appearing as an emcee at main crypto occasions in New York.
Stone’s Fraudulent Actions Spanned Years
Between 2016 and 2022, Sfraga satisfied at the least 17 victims in Brooklyn, Staten Island, and Lengthy Island to spend money on fraudulent ventures, together with actual property flipping initiatives and cryptocurrency investments, promising returns of as much as 60% in simply three months.
One in all his schemes concerned persuading a sufferer to lend him $100,000 for a development challenge that didn’t exist.
In one other, he promoted a fictitious crypto “digital pockets,” engaging victims with the prospect of excessive returns.
Moderately than investing the funds, Sfraga spent the cash on private bills and used some to repay earlier victims in a Ponzi-style scheme.
As authorities started investigating, Sfraga fled to Arizona and assumed a false identification.
Regulation enforcement arrested him in Las Vegas after he didn’t pay a invoice on the Wynn On line casino.
The case was prosecuted by Assistant U.S. Lawyer John Vagelatos, with assist from Paralegal Specialist Madison Bates, culminating in Sfraga’s sentencing.
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