Key Takeaways:
- Nicholas Truglia was resentenced to 12 years in prison after failing to repay $20.4 million in restitution for a major crypto theft.
- Truglia originally received an 18-month sentence for his role in a SIM-swapping scheme that stole over $22 million in crypto from blockchain investor Michael Terpin
- Despite claiming his assets were inaccessible, the judge doubted Truglia’s claims, citing his lavish lifestyle as evidence to the contrary.
- The case highlights growing judicial intolerance for crypto-related fraud and reinforces accountability for financial restitution in digital crimes.
A man convicted in a $22 million cryptocurrency theft was sentenced to 12 years in prison on Thursday after failing to repay $20.4 million in restitution as required by a plea deal.
Nicholas Truglia, 27 years old, had previously served 18 months for his role in a SIM-swapping scheme that targeted blockchain investor Michael Terpin. The attackers exploited telecom security flaws to take over Terpin’s phone and access his digital wallets, with Truglia acting as the group’s ‘cash-out’ agent, helping convert the stolen crypto into Bitcoin
According to Bloomberg, U.S. District Judge Alvin Hellerstein in Manhattan federal court ruled that Truglia had “willfully” breached his plea agreement by failing to repay any portion of the restitution.
“You paid not a cent, not one cent,” Judge Hellerstein said during the resentencing, ordering Truglia into immediate custody.
Court filings from Truglia’s original sentencing revealed he controlled more than $53 million in assets, including cryptocurrency, art, and jewelry.
His attorney, Mark Gombiner, said Truglia had surrendered all accessible funds, including those in a Wells Fargo account.
Meanwhile, Truglia claimed much of his wealth was tied up in a Bitcoin wallet he could no longer access. He said he would repay the funds if he could recover them.
However, Terpin, speaking by phone at the hearing, dismissed the explanation as “a giant smoke screen”.
Judge Hellerstein, doubting Truglia’s claims, criticized his lavish lifestyle, saying, ‘You didn’t have a job, but you lived in splendor. In response, Gombiner called the new sentence ‘an extraordinary abuse of discretion’ and said he would appeal.
Final Thoughts
The case has become a clear example of how courts are stepping up pressure on crypto offenders. A fast-moving SIM-swap heist can spiral into years of legal trouble and become a cautionary tale about taking responsibility and facing real-life consequences in the digital age.
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