Thomas John Sfraga, also known as “TJ Stone,” received 45 months in prison for wire fraud and was ordered to pay more than $1.3 million in forfeiture as part of a scheme targeting crypto investors.
In a March 14 notice, the US Justice Department said Sfraga was sentenced in the US District Court for the Eastern District of New York (EDNY) for wire fraud following a May 2024 guilty plea. Court filings stated that the influencer and podcaster claimed he was the owner of businesses — including Vandelay Contracting, a name based on a running joke from the television series Seinfeld — and the emcee of many crypto events in New York City.
“[…] Sfraga convinced a victim to invest in a fictitious cryptocurrency ‘virtual wallet,’” said the Justice Department. “He promised the victims returns on their investments as high as 60% in three months. In reality, however, Sfraga used the money entrusted to him by the victims for his own benefit, to pay expenses, and to pay earlier victims and business associates.”
Sfraga’s case was one of many involving crypto-related crimes continuing to be pursued in the jurisdiction following the appointment of John Durham as interim US Attorney by President Donald Trump. Braden John Karony, former CEO of SafeMoon, who also faces EDNY criminal charges, requested in February that his criminal trial for securities fraud conspiracy, wire fraud conspiracy and money laundering conspiracy be pushed based on the administration’s approach to crypto enforcement.
The “Seinfeldian” scheme, according to Durham, was not the first time the crypto industry was connected to the popular sitcom. Comedian Larry David, co-creator of the show, starred in a Super Bowl ad for defunct cryptocurrency exchange FTX in 2022. He later said he was “an idiot” for endorsing the company and lost a lot of money after the price of specific tokens dropped.
Since Trump took office on Jan. 20, some high-profile defendants in criminal cases involving cryptocurrency have reportedly been looking into appealing to the US president for a pardon. Among those reportedly seeking pardons were former FTX CEO Sam Bankman-Fried, currently serving a 25-year sentence following a 2023 conviction, and former Binance CEO Changpeng Zhao, who served a four-month sentence in 2024 — though he denied reports of a potential pardon.
Met Police Commissioner Sir Mark Rowley has said his officers should not be “policing toxic culture wars debates” as he responded to his force’s arrest of Father Ted writer Graham Linehan over anti-trans posts.
The UK’s top police officer said his officers are in an “impossible position”, adding that he has offered to provide suggestions to the Home Office about clarifying the law and policy.
“Greater clarity and common sense would enable us to limit the resources we dedicate to tackling online statements to those cases creating real threats in the real world,” he said.
Mr Rowley added that the Metropolitan police will be more selective about what social media posts it should investigate in future.
“We will be putting in place a more stringent triaging process to make sure only the most serious cases are taken forward in future – where there is a clear risk of harm or disorder.”
Image: Sir Mark Rowley (left) has waded into the controversy surrounding online posts by Graham Linehan (right). File pic: PA
It comes hours after health secretary Wes Streeting told Sky News the government needs to look at whether police are “getting the balance right”.
The health secretary told Sky News Breakfast with Wilfred Frost that he can’t comment on the specifics of the case, as operational police decisions are “rightly independent of politicians”.
However, Mr Streeting said more generally that the government would rather see “police on the streets rather than policing tweets”.
The cabinet member added: “It’s the easiest thing in the world for people to criticise the police, but they are enforcing laws that parliament has passed and asked them to enforce.
“So if we haven’t got the balance right, as Parliament over successive governments, that is something that we need to look at because the Home Secretary is very clear about what her priorities are”.
He said that those priorities are neighbourhood policing and keeping borders safe.
Writing on Substack, Lineham said that after flying into the UK from Arizona, he was detained by five armed officers at Heathrow Airport and put in a cell before being questioned over posts published on X in April.
He added that officials became concerned for his health after taking his blood pressure, and he was taken to hospital.
The arrest has drawn criticism from opposition politicians.
Shadow justice secretary Robert Jenrick said the incident was “ridiculous and a complete waste of police time”.
Reform UK leader Nigel Farage said he would raise the case when he gives evidence to the House Judiciary Committee in Washington on free speech in the UK during a hearing on Wednesday, The Sun reported.
Image: Nigel Farage will raise the case in Washington. Pic: PA
Harry Potter author JK Rowling, who has regularly shared her views on women’s rights in relation to transgender rights on social media, also waded into the row, posting on X: “What the f*** has the UK become? This is totalitarianism. Utterly deplorable.”
Sir Keir Starmer’s official spokesman said it was an operational matter for the police when asked about the arrest yesterday.
He added: “The prime minister and the home secretary have been clear about where their priorities for crime and policing are, and that’s tackling anti-social behaviour, shoplifting, street crime, as well as reducing serious violent crimes like knife crime and violence against women”.
Asked whether the government agreed with the Harry Potter author’s claim that the UK was now a “totalitarian” state, the spokesman said: “No.”
A Met Police spokeswoman confirmed an arrest was made at Heathrow Airport on Monday, but did not identify Linehan.
In a statement, the force said: “On Monday, 1 September at 1pm officers arrested a man at Heathrow Airport after he arrived on an inbound American Airlines flight.
“The man in his 50s was arrested on suspicion of inciting violence. This is in relation to posts on X.
“After being taken to police custody, officers became concerned for his health and he was taken to hospital. His condition is neither life-threatening nor life-changing.
“He has now been bailed pending further investigation.”
Angela Rayner has admitted she did not pay the right amount of stamp duty on the purchase of her second home and has referred herself to the independent adviser on ministerial standards.
Speaking to Sky News’ political editor Beth Rigby on the Electoral Dysfunction podcast, the deputy prime minister became tearful as she claimed she received incorrect tax advice and spoke to her family about “packing it all in”.
Ms Rayner, who is also the housing secretary, has been under scrutiny after a report in The Daily Telegraph claimed she avoided £40,000 in stamp duty on a flat in Hove by removing her name from the deeds of another property in Greater Manchester.
In a lengthy statement released today, she said it was a “complex living arrangement” as her first home was sold to a trust following her divorce to provide stability for her teenage son, who has lifelong disabilities and is the sole beneficiary of the trust.
She said initial legal advice was that the standard rate of stamp duty applied but following media reports she sought expert counsel who said more tax is due.
She added that these matters were confidential but she applied to a court yesterday to get this lifted in the interests of public transparency.
In a subsequent interview with Beth Rigby, a visibly upset Ms Rayner said: “I’ve been in shock, really, because I thought I’d done everything properly, and I relied on the advice that I received and I’m devastated because I’ve always upheld the rules and always have felt proud to do that.
More on Politics
Related Topics:
“That it is devastating for me and the fact that the reason why those confidential clauses were in place was to protect my son, who, through no fault of his own, he’s vulnerable, he’s got this life changing, lifelong conditions and I don’t want him or anything to do with his day-to-day life, to be subjected to that level of scrutiny.”
Asked if she thought about quitting rather than disclose the details about her son, the cabinet minister added: “I spoke to my family about it. I spoke to my ex-husband, who has been an incredibly supportive person because he knows that all I’ve done is try and support my family and help them.”
PM backs Rayner
The statement dropped shortly before the first PMQs following the summer recess. Tory leader Kemi Badenoch said Sir Keir Starmer should fire his deputy.
“If he had backbone, he would sack her,” she said.
However Sir Keir defended Ms Rayner, saying he is “very proud to sit alongside” her.
“She has explained her personal circumstances in detail. She’s gone over and above in setting out the details, including yesterday afternoon asking a court to lift a confidentiality order in relation to her own son.”
He added: “I am very proud to sit alongside a deputy prime minister who is building 1.5m homes, who is bringing the biggest upgrade to workers rights in a generation, and has come from a working class background to become deputy prime minister of this country.”