Thomas John Sfraga, known online as “TJ Stone,” has been sentenced to 45 months in prison for wire fraud in a scheme targeting cryptocurrency investors. The U.S. Department of Justice (DOJ) announced the sentencing on March 14, revealing that Sfraga was also ordered to forfeit more than $1.3 million.
The ruling came from the U.S. District Court for the Eastern District of New York (EDNY) following Sfraga’s guilty plea in May 2024. According to court documents, the self-proclaimed influencer and podcaster misrepresented himself as the owner of various businesses, including “Vandelay Contracting”—a name inspired by a long-running joke from the sitcom Seinfeld.
Fake Crypto Investments and Empty Promises
Sfraga convinced at least one victim to invest in a fraudulent cryptocurrency “virtual wallet,” falsely promising returns of up to 60% within three months. However, instead of investing the funds, he used the money for personal expenses and to pay off previous victims and business associates.
“[Sfraga] promised the victims returns on their investments as high as 60% in three months,” the DOJ stated. “In reality, however, Sfraga used the money entrusted to him by the victims for his own benefit.”
Crypto Crime Crackdown Continues
Sfraga’s case is one of many crypto-related fraud prosecutions handled by the EDNY, an enforcement hotspot since John Durham’s appointment as interim U.S. Attorney under the Trump administration.
Another high-profile case in the jurisdiction involves Braden John Karony, former CEO of SafeMoon, who faces charges of securities fraud conspiracy, wire fraud conspiracy, and money laundering conspiracy. In February, Karony requested a delay for his trial, citing concerns over the administration’s approach to crypto enforcement.
Crypto’s Strange Connection to Seinfeld
Sfraga’s use of the fictional “Vandelay Contracting” business isn’t the first time the crypto industry has been linked to Seinfeld. Comedian Larry David, co-creator of the show, starred in a 2022 Super Bowl ad for the now-defunct crypto exchange FTX. The satirical ad portrayed David as dismissing revolutionary inventions—ironically foreshadowing FTX’s collapse.
David later admitted he was “an idiot” for endorsing the exchange, and like many others, he suffered financial losses when certain crypto tokens plummeted in value.
