Crypto Personality Thomas Sfraga Pleads Guilty to Wire Fraud, Defrauding Investors of $1.3M
Summary:
Thomas John Sfraga, a well-known personality in the cryptocurrency domain, has confessed to wire fraud. He is accused of tricking multiple investors into fictitious cryptocurrency schemes, defrauding them of more than $1.3 million. Investors were promised high returns in a Ponzi-like setup, whereby returns were paid from new participants' funds. This comes amid a recent increase in the crackdown on cryptocurrency fraud.
Renowned figure in the world of cryptocurrency, Thomas John Sfraga, has confessed to charges of wire fraud following allegations of swindling over a dozen investors into contributing to non-existent projects, including fake cryptocurrency systems. According to a May 17 statement by the U.S. Department of Justice, Sfraga lured one of the victims into investing in a counterfeit “virtual wallet” for cryptocurrency. The DOJ statement elaborates on Sfraga's background in hosting podcasts and his involvement in cryptoevents in New York. He had promised the unsuspecting investors returns up to 60% within a span of just three months. Unfortunately, this turned out to be a Ponzi scheme, where the profits of the investors don’t come from legitimate gains but from the investments of future participants. Sfraga allegedly used the investments for his personal gains, to cover expenses, and to pay back his prior victims and business partners. Several victims were reportedly close acquaintances and neighbors of Sfraga, who had trusted him and ended up losing over $1.3 million of their hard-earned money. For reference, a 65% rise over three months isn't uncommon in the crypto market, with Bitcoin (BTC) following a similar upward trend and hitting a high of $66,408 on April 24, as per CoinMarketCap. Over the last 30 days, Bitcoin has seen an increase of 8.92%, and is currently trading at $66,860. Other altcoins like PEPE (PEPE) and dogwifhat (WIF) recorded a staggering increase of 722% and 656% respectively, over the same three-month period. There has been an increased crackdown on cryptocurrency fraud recently. On May 15, it was reported that the DOJ has brought charges against brothers Anton Peraire-Bueno and James Pepaire-Bueno for their alleged participation in wire fraud, conspiracy to commit wire fraud, and money laundering, accusing them of rapidly accumulating $25 million in cryptocurrency in a matter of seconds through a method that compromises the blockchain system's integrity. Additionally, in an earlier instance on April 4, the former chief of legal and compliance for the massive OneCoin fraud scheme received a four-year sentence after pleading guilty to helping launder millions of dollars.
Published At
5/18/2024 4:26:36 AM
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