Crypto Scammer Sentenced to 12 More Years for Evading $20M Restitution Payment

Nicholas Truglia, a convicted cryptocurrency scammer, has received an additional 12-year prison sentence after failing to pay $20 million in court-ordered restitution to his victim, according to Bloomberg reports. This significant sentence extension comes after Truglia's initial 18-month prison term handed down in December 2022.

The Original SIM Swap Attack

The case stems from a sophisticated SIM swap attack where Truglia participated in a scheme to illegally access a victim's cryptocurrency wallet containing $20 million in digital assets. According to Department of Justice documents, the perpetrators gained unauthorized control of the victim's phone number by executing a SIM card swap, which allowed them to bypass security measures. After gaining access, Truglia helped drain the victim's funds and convert the stolen assets into bitcoin.

Previous Conviction and Broken Promises

Truglia had previously pleaded guilty to conspiracy to commit wire fraud. At the time of his initial sentencing in December 2022, he had already served 12 months in custody. During that hearing, Truglia agreed to pay the victim over $20 million in restitution after the court revealed he possessed over $53 million in combined cryptocurrency, art, and jewelry assets.

Failure to Pay and Luxury Purchases

Court documents filed on April 25 revealed that Truglia had failed to make any payments toward the mandated restitution. Instead, prosecutors discovered he had spent approximately $92,000 on luxury goods, including designer hoodies, watches, and sneakers.

"Of course, these assets don't amount to $20 million, but Mr. Truglia's failure to give account to what he had and favoring his own indulgences over his obligation to pay is indicative of his intent never to pay his debt, his willfulness," states the court document.

Judicial Response

United States District Judge Alvin Hellerstein, who handled Truglia's original sentencing in 2022, determined on July 2 that "resentencing is appropriate" because Truglia had "failed to pay restitution and actively evaded law enforcement and judicial efforts to enforce his restitution obligation."

Defense Arguments

On July 9, Truglia's legal team contested the characterization of their client's actions, arguing that he had in fact contributed toward his restitution obligation by surrendering "every valuable asset he has access to," including all funds in his Wells Fargo bank account.

The case highlights the serious legal consequences facing cryptocurrency criminals who attempt to evade court-ordered financial penalties, particularly in high-value digital asset theft cases involving sophisticated tactics like SIM swapping.