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“There was thing comic astir his usage of a Seinfeldian company, Vandelay Industries, to transportation retired this fraud,” said US Attorney John Durham.
Thomas John Sfraga, besides known arsenic “TJ Stone,” received 45 months successful situation for ligament fraud and was ordered to wage much than $1.3 cardinal successful forfeiture arsenic portion of a strategy targeting crypto investors.
In a March 14 notice, the US Justice Department said Sfraga was sentenced successful the US District Court for the Eastern District of New York (EDNY) for ligament fraud pursuing a May 2024 blameworthy plea. Court filings stated that the influencer and podcaster claimed helium was the proprietor of businesses — including Vandelay Contracting, a sanction based connected a moving gag from the tv bid Seinfeld — and the emcee of galore crypto events successful New York City.
“[...] Sfraga convinced a unfortunate to put successful a fictitious cryptocurrency ‘virtual wallet,’” said the Justice Department. “He promised the victims returns connected their investments arsenic precocious arsenic 60% successful 3 months. In reality, however, Sfraga utilized the wealth entrusted to him by the victims for his ain benefit, to wage expenses, and to wage earlier victims and concern associates.”
Sfraga’s lawsuit was 1 of galore involving crypto-related crimes continuing to beryllium pursued successful the jurisdiction pursuing the assignment of John Durham arsenic interim US Attorney by President Donald Trump. Braden John Karony, erstwhile CEO of SafeMoon, who besides faces EDNY transgression charges, requested successful February that his transgression proceedings for securities fraud conspiracy, ligament fraud conspiracy and wealth laundering conspiracy beryllium pushed based connected the administration’s attack to crypto enforcement.
The “Seinfeldian” scheme, according to Durham, was not the archetypal clip the crypto manufacture was connected to the fashionable sitcom. Comedian Larry David, co-creator of the show, starred successful a Super Bowl advertisement for defunct cryptocurrency speech FTX successful 2022. He aboriginal said helium was “an idiot” for endorsing the institution and mislaid a batch of wealth aft the terms of circumstantial tokens dropped.
Related: Why comedian TJ Miller wants to beryllium a trustworthy look for Bitcoin
Since Trump took bureau connected Jan. 20, immoderate high-profile defendants successful transgression cases involving cryptocurrency person reportedly been looking into appealing to the US president for a pardon. Among those reportedly seeking pardons were erstwhile FTX CEO Sam Bankman-Fried, presently serving a 25-year condemnation pursuing a 2023 conviction, and erstwhile Binance CEO Changpeng Zhao, who served a four-month condemnation successful 2024 — though he denied reports of a imaginable pardon.
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