Cryptocurrency Scammer Sentenced to 12 More Years for Failing to Pay $20 Million Restitution

Nicholas Truglia, a convicted cryptocurrency scammer, has been sentenced to an additional 12 years in prison for failing to pay restitution related to a $20 million cryptocurrency scam. This extends his original 18-month sentence handed down in 2022. Truglia was involved in a scheme where he assisted in illegally accessing a $20 million cryptocurrency wallet by swapping the victim's phone number-linked SIM card. He then helped drain the victim's funds and convert the assets into Bitcoin.

Truglia pleaded guilty to conspiracy to commit wire fraud and had already served 12 months of his 18-month sentence when he was resentenced. During the hearing, he agreed to pay over $20 million in restitution to the victims. However, his failure to fulfill this agreement led to the additional 12-year sentence. U.S. District Judge Alvin Hellerstein emphasized the severity of Truglia's actions, stating that he had paid "not a cent, not one cent" in restitution.

Truglia's lawyer, Mark Gombiner, argued that the new sentence was illegal and an "extraordinary abuse of discretion," promising to appeal the decision. The scam involved a group of hackers who tricked telecom employees into transferring customers' cell numbers to SIM cards controlled by the hackers. Truglia was recruited to convert the stolen digital tokens into Bitcoin after the hackers drained the victim's cryptocurrency accounts.

During Truglia's initial sentencing hearing, it was revealed that he had $53 million in assets, including cryptocurrency, art, and jewelry. Gombiner argued in a court filing that Truglia had surrendered all valuable assets he had access to, including all the money in a Wells Fargo & Co. account. However, the victim, participating in the hearing by phone, called Truglia's claim a "giant smoke screen." The judge criticized Truglia's lavish lifestyle, noting that he did not have a job but lived in splendor.

The case underscores the severe legal consequences for those who engage in cryptocurrency fraud and fail to meet their restitution obligations. The extended sentence serves as a warning of the legal repercussions for such crimes and the importance of honoring court-ordered restitution agreements. The case is ongoing, with Truglia's legal team planning to appeal the decision.