Efe Nail Saltık 
Thomas John Sfraga, also known as “TJ Stone,” pleaded guilty to fraud charges Thursday in Brooklyn federal court. Sfraga promised investors up to 60% returns in three months for a fake cryptocurrency digital wallet. Instead, he pocketed the funds himself or used them to pay off his previous victims.
Fraudulent Activities and Accusations
Sfraga promised investors up to 60% returns in three months for a fake cryptocurrency digital wallet, according to a statement from the US Department of Justice (DOJ) on Friday. However, he took these funds for himself and used them to pay off previous victims. Sfraga was also alleged to have committed fraud regarding crypto staking; he promoted it as an “absolutely safe” and “risk-free” situation. Additionally, Vandelay Contracting Corp. He claimed that he owned a company called.
If convicted, Sfraga faces up to 20 years in prison and must pay $1.33 million in restitution, according to the DOJ statement. “Sfraga lied to friends, neighbors and investors for years, defrauding them of more than $1.3 million out of their savings,” said U.S. Attorney Breon Peace. Sfraga’s experience is limited to real estate development, media relations, podcasting and organizing cryptocurrency events.
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