Crypto personality pleads guilty to fraud after promising 60% ‘fictitious’ returns
The United States Department of Justice alleges Thomas John Sfraga convinced a victim to invest in a “fictitious” cryptocurrency” wallet after promising significant gains.
Cryptocurrency personality Thomas John Sfraga has pleaded guilty to wire fraud after allegedly deceiving more than a dozen victims into investing in nonexistent ventures, including fraudulent cryptocurrency schemes.
“Sfraga convinced a victim to invest in a fictitious cryptocurrency “virtual wallet,” the United States Department of Justice (DOJ) declared in a May 17 statement. The agency further explained that Sfraga has experience in podcasting and the crypto industry, including acting as the host of crypto events in New York.
“He promised the victims returns on their investments as high as 60% in three months,” the DOJ added. However, it appears he was operating a Ponzi scheme, where the returns paid to earlier investors came not from legitimate profits but from the investments of new participants.
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Author: Ciaran Lyons
