A popular Brooklyn crypto influencer, known as Thomas John Sfraga or “TJ Stone,” was sentenced to nearly four years in federal prison for running a multimillion-dollar Ponzi scheme. Sfraga, who once hosted a well-liked podcast, convinced at least 17 individuals to invest over $2 million in his fraudulent business ventures, including the Vandelay Contracting Corporation, a nod to the show Seinfeld.
Sfraga’s scam, which operated from 2016 to 2022, targeted friends, neighbors, former classmates, and even his child’s baseball coach, as well as individual cryptocurrency investors. He promised investments in real estate and cryptocurrency opportunities but instead used the money for personal expenses and to repay victims in order to gain their trust.
Ultimately, the scheme unraveled when investors became suspicious, leading Sfraga to flee to Arizona under a false identity before being apprehended in Nevada for failing to pay a casino bill in Las Vegas. In May 2024, Sfraga pleaded guilty to wire fraud and was sentenced to 45 months in prison by U.S. District Judge Frederic Block in Brooklyn. He was also ordered to forfeit $1.3 million, with further restitution to be determined for the victims at a later date.
Among the victims were individuals Sfraga had known since childhood, parents of his child’s teammates, and attendees of cryptocurrency networking events. The fraudulent ventures included Build Strong Homes and a “virtual wallet” cryptocurrency project.
Despite the severe consequences of his actions, an attorney for Sfraga declined to provide a comment. The case serves as a cautionary tale for individuals involved in cryptocurrency investments and highlights the importance of safeguarding oneself against such scams.
Court documents reveal that Sfraga deceived multiple victims by convincing them to invest in real estate projects and cryptocurrency ventures through his company, Vandelay Corporation. He misled individuals into giving him large sums of money, including funds received as wedding gifts. When pressed for repayment, Sfraga fabricated excuses such as a family emergency to avoid returning the money. Eventually, the scheme unraveled as investors demanded their funds back.
Sfraga’s fraudulent activities led to his arrest in Nevada for failing to pay his casino bill, and he was subsequently taken into federal custody for his crimes. Despite his criminal behavior, Sfraga had previously enjoyed a seemingly stable life with a supportive wife, successful business ventures, and a popular podcast. However, his deceitful actions ultimately led to a four-year prison sentence for defrauding investors of over $2 million.
A man, referred to as [Sfraga], faced legal repercussions after engaging in deceptive activities, as indicated by court records. Despite having the opportunity to pursue a career in college baseball at Arizona State University, he chose a different path upon settling down in Brooklyn, where he got married and started a family. Prosecutors noted that he had the chance for a lawful and productive life but instead opted to deceive his community to fund his lifestyle. The individual involved has been sentenced for his actions in what has been described as a ‘Seinfeldian’ scheme. For more information, contact Michael Loria, a national reporter at USA TODAY, via email at mloria@usatoday.com or Signal at (202) 290-4585.
