In a Brooklyn federal court on Thursday, crypto personality Thomas John Sfraga, also known as “TJ Stone,” pleaded guilty. wire fraud charges for defrauding more than a dozen victims out of more than $1.3 million.
A fictional project revealed
According to At the U.S. Department of Justice, from 2019 to 2022, Sfraga “falsely” represented himself as the owner and director of several companies, including Vandelay Contracting Corp. and Build Strong Homes LLC. He also claimed to be a “serial entrepreneur” with experience in real estate development, media relations, podcasting and cryptocurrencies.
As such, Sfraga allegedly convinced his victims, many of whom were located in Brooklyn, Staten Island, and Long Island, to loan or lend him money. invest in what turned out to be fraudulent schemes.
This included the promise of high returns of up to 60% in three months for investments in a fictitious cryptocurrency “virtual wallet”. U.S. Attorney Breon Peace said:
For years, Sfraga brazenly lied to his friends, neighbors and investors to defraud them of more than $1.3 million of their hard-earned savings. This Office will continue to hold fraudsters accountable and seek justice for victims throughout the Eastern District of New York and the United States.
Crypto schemer faces 20 years in prison
On one occasion, Sfraga allegedly convinced a victim to lend him $100,000 in cash to cover start-up costs for a large, “non-existent” construction project. In reality, the US DOJ claims that Sfraga simply converted funds intended for his expenses in order to reimburse his victims and previous associates.
Sfraga pleaded guilty to wire fraud charges before United States Chief Justice Lois Bloom. Once convicted, he faces a maximum prison sentence 20 years old and must pay his victims more than $1.33 million in compensation.
The guilty plea was announced by U.S. Attorney Breon Peace and James Smith, assistant director in charge of the FBI’s New York field office.
Since the last market update, the cryptocurrency has seen a notable rise, with prices rising in the largest digital assets.
Bitcoin (BTC), the flagship cryptocurrency, has regained the $67,000 mark for the first time since the end of April, up almost 10% over the past week. Ethereum (ETH), on the other hand, was one of the biggest gainers over the past 24 hours, rising 5.5% to a current price of $3,111.
Additionally, the total cryptocurrency market capitalization rose 3% in the last 24 hours, currently reaching $2.37 trillion, demonstrating a renewed sense of bullish sentiment reverberating throughout the digital asset ecosystem.
Featured image from Shutterstock, chart from TradingView.com
