Crypto influencer sentenced to 45 months in prison for wire fraud

Thomas John Sfraga, known as “TJ Stone,” has been sentenced to 45 months in prison for wire fraud and ordered to forfeit over $1.3 million for his role in a scheme aimed at crypto investors.

On March 14, the US Justice Department announced that Sfraga was sentenced in the Eastern District of New York after pleading guilty in May 2024. According to court documents, the influencer and podcaster falsely claimed ownership of several businesses—one of which, Vandelay Contracting, is a nod to a recurring joke from the TV show Seinfeld—and also presented himself as a host of various crypto-focused events in New York City.

“[…] Sfraga deceived a victim into investing in a bogus cryptocurrency ‘virtual wallet,’” the Justice Department stated. “He assured victims of returns up to 60% within three months. However, instead of investing the funds as promised, Sfraga misappropriated the money for personal use, to cover expenses, and to pay off earlier victims and associates.”

Sfraga’s situation is one of several ongoing investigations into crypto-related crimes since John Durham was appointed as the interim US Attorney by President Trump. Braden John Karony, the former CEO of SafeMoon, who also faces criminal charges in the same district, asked in February for his trial regarding conspiracy to commit securities fraud, wire fraud, and money laundering to be delayed, citing the administration’s stance on crypto regulation.