The restitution amount will be determined at a later date. Sfraga pleaded guilty to wire fraud charges in May 2024, admitting to convincing approximately 17 victims in Brooklyn, Staten Island, and Long Island to invest in fictitious projects, including a nonexistent crypto “virtual wallet” promising returns as high as 60% within three months. Instead, he misused the funds to cover personal expenses, repay earlier victims, and compensate business associates, operating a classic Ponzi scheme that caused severe financial and emotional harm.
One victim was tricked into lending him $100,000 in cash for a nonexistent construction project. U.S. Attorney for the Eastern District of New York, John J. Durham, condemned Sfraga’s actions, stating, “Sfraga callously stole from friends, next-door neighbors, and the parents of children who played on teams with his own children, as well as from individual cryptocurrency investors.” Stay informed on crypto fraud trends with
Crypto Market Insights on news.thecoininfo.com, and explore in-depth analysis on The Coin Info Hub at thecoininfo.com.
