Crypto Personality Pleads Guilty to Fraud, Promised 60% Returns in Fictitious Ventures

Thomas John Sfraga, a cryptocurrency personality, has pleaded guilty to wire fraud after allegedly deceiving numerous victims into investing in nonexistent ventures, including fraudulent cryptocurrency schemes. The United States Department of Justice (DOJ) stated that Sfraga convinced a victim to invest in a fictitious cryptocurrency wallet, promising returns as high as 60% in three months. However, it was revealed that Sfraga was operating a Ponzi scheme, using funds from new investors to pay returns to earlier investors and for personal expenses. The scheme allegedly swindled over $1.3 million from victims, including friends and neighbours of Sfraga. Sfraga's guilty plea comes amid a crackdown on cryptocurrency fraud, with recent cases including charges against individuals for wire fraud, money laundering, and involvement in fraudulent schemes undermining the integrity of blockchain technology.