Bitrabo Editorial
Thomas John Sfraga, also known as “TJ Stone”, admitted to wire fraud charges in a Brooklyn court for deceiving more than a dozen victims of over $1.3 million.
Fraudulent Representation Unveiled
According to the US Department of Justice, between 2019 and 2022, Sfraga falsely portrayed himself as the owner of various businesses and a seasoned entrepreneur, luring victims into investing in non-existent ventures.
He duped victims, primarily from Brooklyn, Staten Island, and Long Island, into providing loans or investments in fraudulent projects, including a fake cryptocurrency virtual wallet promising unrealistically high returns of up to 60% in three months.
US Attorney Breon Peace condemned Sfraga’s actions, emphasizing the need to hold fraudsters accountable and bring justice to victims.
Legal Consequences for Crypto Scammer
Sfraga managed to convince a victim to lend him $100,000 in cash for a phony construction venture. However, he diverted the funds for personal use, paying off previous victims and associates.
Having pleaded guilty to wire fraud charges, Sfraga faces a potential 20-year prison sentence and must repay his victims over $1.33 million.
The guilty plea was announced by US Attorney Breon Peace and James Smith, Assistant Director-in-Charge of the FBI’s New York Field Office.
The cryptocurrency market has recently experienced significant growth, with major digital assets observing price surges.
Bitcoin (BTC) has surpassed $67,000 for the first time since late April, marking a nearly 10% increase in the past week. Ethereum (ETH) has notably risen by 5.5% in the last 24 hours, reaching $3,111.
The total cryptocurrency market capitalization has also surged by 3% in the past day, now standing at $2.37 trillion, signaling a bullish sentiment prevailing in the digital asset ecosystem.
Featured image from Shutterstock, chart from TradingView.com