Breaking News: Cryptocurrency Podcaster Sentenced to Prison for Fraud
In a significant legal development, the United States Department of Justice (DOJ) has announced the sentencing of a well-known cryptocurrency podcaster and online figure, T.J. Stone, following a conviction for wire fraud. The individual, whose real name is Thomas John Sfraga, masterminded an intricate investment scheme, defrauding unsuspecting investors out of more than $2 million.
Crypto Influencer T.J. Stone Deceives Investors Out of Millions
The DOJ’s Eastern District of New York released a statement detailing how Sfraga, known publicly as T.J. Stone, operated between 2016 and 2022. During this period, he crafted a deceptive persona as a successful serial entrepreneur involved in diverse sectors such as real estate, podcasting, media, and cryptocurrency. This façade enabled him to attract and solicit funds from individuals in Brooklyn, Staten Island, and Long Island.
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Stone lured his victims by promising lucrative returns from investments in real estate and fraudulent cryptocurrency projects. He claimed ownership of businesses like Build Strong Homes LLC and Vandelay Contracting Corp. Among his notable deceptions was securing a $100,000 loan for a fictitious start-up construction firm. Additionally, he persuaded investors to fund a non-existent crypto wallet, falsely guaranteeing a 60% return within three months. Contrary to his promises, Stone utilized these funds for personal expenditures and to pay previous victims, thereby perpetuating the illusion of legitimate business operations.
According to the DOJ, Stone’s fraudulent activities affected at least 17 individuals, resulting in a financial loss of $2 million. John Durham, the Attorney General of the Eastern District of New York, remarked on the severity of Stone’s actions, highlighting how he heartlessly exploited friends, neighbors, and even parents of children involved in sports teams with his own.
After his fraudulent activities came under investigation, Stone attempted to evade justice by fleeing to Arizona under an alias. Nonetheless, authorities eventually apprehended him in Las Vegas. In May 2024, Sfraga admitted guilt to charges of wire fraud.
Legal Consequences and Financial Restitution
On March 13, United States District Judge Frederic Block sentenced Stone to 45 months in prison. This sentence is considerably less than the maximum penalty of 240 months for wire fraud. Additionally, Stone is mandated to forfeit $1,337,000, with the exact restitution amount to be determined later.
In parallel financial news, the cryptocurrency market is experiencing a positive trend. The total market capitalization has increased by 2.12%. Bitcoin, the leading cryptocurrency, has surged by 3.21%, trading at over $84,000 and boasting a market cap of approximately $1.67 trillion. Other major altcoins like Ethereum (ETH), XRP, and Solana (SOL) have also recorded gains of 1.22%, 5.64%, and 7.21% respectively in the last 24 hours.
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