Thomas John “T.J. Stone” Sfraga was sentenced in federal court for scamming real estate and crypto investors through a business inspired by the 90s TV show Seinfeld.

According to a press release from the U.S. Attorney’s Office, Sfraga was sentenced to 45 months in prison and ordered to pay nearly $1.4 million in forfeiture to the state. The restitution amount will be announced at a later date.

Sfraga pleaded guilty to wire fraud charges in May 2024. He reportedly convinced multiple victims to invest in a fake crypto project called “virtual wallet.” He promised investors returns as high as 60% in a time span of three months. In reality, there was no virtual wallet project. Instead, Sfraga used the money to pay expenses and to pay earlier victims as well as business associates, conducting a Ponzi scheme.

To fool his victims, Sfraga claimed to own several businesses, including Build Strong Homes LLC and Vandelay Contracting Corp. Vandelay Contracting was named after the fictional “Vandelay Industries” from the hit TV show Seinfeld, where the character George Costanza falsely claimed to have interviewed for a job.

Sfraga also promoted himself as an entrepreneur, podcaster, and crypto advocate. He frequently worked as an emcee for cryptocurrency events in New York, using his status to gain the trust of crypto traders.

According to the release, Sfraga defrauded around 17 victims from Brooklyn, Staten Island, and Long Island. He convinced them to loan him money or invest in fake instruments tied to real estate and crypto. One victim was scammed into lending him $100,000 in cash to cover start-up costs for a fake construction project.

U.S. Attorney for the Eastern District of New York, John J. Durham, said Sfraga caused severe financial and emotional harm to his victims, who trusted him to deliver on his promised investment returns.

“Sfraga callously stole from friends, next-door neighbors, and the parents of children who played on teams with his own children, as well as from individual cryptocurrency investors,” said Durham in his statement.

Based on a recent survey done in the U.S. and Canada by The North American Securities Administrators Association, cryptocurrency and social media scams were revealed to be the top two threats faced by retail investors in 2025.

About 32% of recorded scams lured victims through social media platforms like Facebook and X, while another 31% were linked to messaging services, including Telegram and WhatsApp.