Crypto Scammer Nicholas Truglia Sentenced to 12 More Years for Failing to Repay $20 Million

Nicholas Truglia, a notorious figure in the cryptocurrency fraud landscape, has been sentenced to an additional 12 years in prison for failing to meet his restitution obligations related to a $20 million crypto scam. This development comes after his initial 18-month sentence handed down in December 2022, highlighting the growing legal scrutiny surrounding crypto-related financial crimes.

Truglia's scheme involved sophisticated SIM swapping techniques, where he hijacked mobile phone numbers to gain unauthorized access to victims' cryptocurrency wallets. By exploiting this method, he was able to transfer and convert stolen assets into Bitcoin, making the fraud more complex and harder to trace. The U.S. Department of Justice detailed how Truglia's actions resulted in the theft of $20 million worth of cryptocurrency, underscoring the need for robust cybersecurity measures and regulatory enforcement to protect digital asset holders from such threats.

Truglia pleaded guilty to conspiracy to commit wire fraud and was initially ordered to repay over $20 million in restitution. However, his repeated failure to comply with the court-ordered payments led to the extension of his sentence. Judge Alvin Hellerstein, who presided over the case, noted that despite Truglia's initial willingness to repay the stolen amount, he consistently evaded law enforcement and judicial efforts to enforce the restitution order. The judge's order highlighted that Truglia owned assets worth significantly more than the restitution amount, yet he made no payments towards it.

Truglia's original sentence included three years of supervised release in addition to the 18-month prison term and the restitution order. He was convicted for one count of wire fraud after using a SIM-swapping scam to compromise Michael Terpin’s cellphone and steal his cryptocurrency. SIM-swapping involves transferring a victim’s phone number to another SIM card, allowing the scammer to receive authentication messages from various service providers, including crypto exchanges and banks, which use the phone number for identity verification.

In 2018, Truglia was arrested for targeting investors in the San Francisco Bay Area with SIM-swapping tactics designed to steal cryptocurrencies. That same year, Terpin, who lost $24 million in crypto to the SIM-swapping scheme, filed a $224 million lawsuit against his wireless carrier for negligence. Terpin also filed a $75 million civil lawsuit against Truglia and was awarded full damages by the court in 2019. The extended sentence for Truglia underscores the severity of his crimes and the importance of enforcing restitution orders to ensure that victims are compensated for their losses.