Crypto influencer sentenced to 45 months for swindling $2m from investors

Thomas John “TJ Stone” SFRAGA was convicted within the Federal Court docket for the rip-off of actual property and Crypto buyers via an organization impressed by the 90s TV present Seinfeld.

In keeping with a press launch from the American legal professionals workplace, SFRAGA was sentenced to 45 months in jail and ordered virtually $ 1.4 million in forfeiture to pay the state. The reimbursement quantity is introduced at a later time.

SFRAGA argued responsible of the fees of fraud in Could 2024. He reportedly satisfied a number of victims to put money into a faux crypto challenge known as ‘Digital Pockets’. He promised that buyers will return to 60% to 60% in a interval of three months. In actuality there was no digital pockets challenge. As an alternative, SFRAGA used the cash to pay prices and to pay earlier victims and enterprise companions, a Ponzi schedule.

To idiot his victims, SFRAGA claimed to have varied firms, together with Construct Robust Properties LLC and Vandelay Contracting Corp. Vandelay Contracting was named after the fictional “Vandelay Industries” of the HIT TV program Seinfeld, the place the character George Costanza Falsy claimed to have interviewed a job.

SFRAGA additionally promoted itself as an entrepreneur, podcaster and crypto lawyer. He typically labored as an EMCEE for cryptocurrency occasions in New York, with the assistance of his standing to win the arrogance of crypto merchants.

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In keeping with the discharge, SFRAGA threatened about 17 victims from Brooklyn, Staten Island and Lengthy Island. He satisfied them to borrow cash or put money into faux devices linked to actual property and crypto. One sufferer was scammed to borrow $ 100,000 in money to cowl the beginning -up prices for a faux building challenge.

The American lawyer for the jap district of New York, John J. Durham, stated that SFRAGA brought about severe monetary and emotional harm to his victims, who trusted him to attain his promised funding returns.

“SFRAGA secure Eeltig from mates, neighbors and the dad and mom of youngsters who performed in groups together with his personal youngsters, in addition to of particular person cryptocurrency buyers,” Durham stated in his assertion.

Primarily based on a current examine within the US and Canada by the North American Securities Directors Affiliation, Cryptocurrency and Social Media Basis have been discovered to be the highest two threats with which Retail buyers are confronted in 2025.

Roughly 32% of the rip-off included attracted victims via social media platforms comparable to Fb and X, whereas one other 31% have been linked to reporting providers, together with Telegram and WhatsApp.

Learn extra: Crypto and Social Media -Cease Cease NASAAs 2025 Investor Danger Checklist