Thomas John Sfraga, nicknamed "TJ Stone," was sentenced to 45 months in prison for wire fraud and ordered to pay over $1.3 million in restitution in a scheme targeting cryptocurrency investors. According to a March 14 announcement, the U.S. Department of Justice said Sfraga was sentenced in the Eastern District of New York (EDNY) for wire fraud after pleading guilty in May 2024. Sfraga, an influencer and host, claimed to be the owner of companies, including Vandelay Contracting, a Seinfeld joke, and was an MC for many cryptocurrency events in New York.
Sfraga convinced victims to invest in a "fictitious cryptocurrency wallet," promising returns of up to 60% within three months. In reality, Sfraga used the victims' money for personal benefit, paying expenses and compensating previous victims and business associates. Sfraga's case is part of a series of cryptocurrency fraud cases being pursued by the EDNY after John Durham was appointed U.S. Attorney by President Donald Trump.
Braden John Karony, the former CEO of SafeMoon, was also indicted by the EDNY for securities fraud, wire fraud conspiracy, and money laundering conspiracy. He has requested a delay in his criminal trial based on the government's approach to cryptocurrency enforcement. According to Durham, this "Seinfeldian" scheme is not the first time the cryptocurrency industry has been linked to the famous TV series. Comedian Larry David, a co-creator of Seinfeld, previously appeared in a Super Bowl 2022 advertisement for the cryptocurrency exchange FTX. He later admitted it was "stupid" to endorse the company and lost a lot of money as the prices of some Tokens declined.
Since Trump took office on January 20, several high-profile defendants in cryptocurrency-related criminal cases have sought to convince the U.S. president to grant them pardons. These include the former CEO of FTX, Sam Bankman-Fried, who is currently serving a 25-year sentence after being convicted in 2023, and the former CEO of Binance, Changpeng Zhao, who was sentenced to four months in 2024 - although he has denied reports of a potential pardon.
