Influencer Sentenced for Crypto and Real Estate Fraud Thomas John “T.J. Stone” Sfraga, posing as a crypto entrepreneur, was sentenced to 45 months in federal prison for operating a $2 million fraud scheme. Sfraga, a cryptocurrency industry regular, ran a Ponzi scheme disguised as a crypto investment opportunity. Fake Crypto Project and Ponzi Scheme Sfraga lured investors with a 60% return in just three months through his so-called “virtual wallet” scheme. But the scheme never existed. He used the money instead to pay for personal expenses and to repay earlier victims to keep the scheme going. Seinfeld-Inspired Fraud To present his business as legitimate, Sfraga asserted ownership of several firms, including “Vandelay Contracting Corp.,” named after the Seinfeld episode’s make-believe company. This was an added layer of deception, which misled investors into placing their trust in him. 17 Victims Targeted Sfraga’s scams reached as far as Brooklyn, Staten Island, and Long Island and bankrupted at least 17 investors. Some were convinced to loan him huge sums, including one man who entrusted him with $100,000 for what purported to be a construction project. Prosecutor’s Comments U.S. Attorney John J. Durham condemned Sfraga’s actions, citing the economic and emotional losses incurred by victims. Most of the victimized individuals were those he knew personally and with whom he was trusted with their savings. Crypto Scams on the Rise According to a survey by the North American Securities Administrators Association, crypto and social media scams are the biggest threat to retail investors in 2025. Figures indicate that 32% of fraud cases are from social media platforms like Facebook and X, and 31% from messaging apps like Telegram and WhatsApp.
