Nicholas Truglia Receives Unprecedented 12-Year Sentence for Multi-Million Dollar Crypto Scam and Restitution Failure

Federal Judge Alvin K. Hellerstein handed down a dramatic sentencing decision against cryptocurrency fraudster Nicholas Truglia, escalating his initial 18-month prison term to an extraordinary 12 years. The radical increase, which far exceeds federal sentencing guidelines of 51 to 63 months, marks one of the most severe penalties in recent cryptocurrency fraud cases. According to reporting by Inner City Press, the July 10 decision was primarily driven by Nicholas Truglia’s willful violation of court orders and his audacious defiance—he continued to hide and convert his stolen assets to Bitcoin while supposedly complying with restitution requirements.

The Timeline of Nicholas Truglia’s Escalating Violations

The Nicholas Truglia case reveals a pattern of repeated misconduct across multiple years. In December 2022, the then-25-year-old was initially sentenced to 18 months for orchestrating a sophisticated SIM-swap attack against crypto investor Michael Terpin. By hijacking Terpin’s phone number and inserting his own SIM card, Truglia gained unauthorized access to the victim’s email and financial accounts, ultimately stealing over $20 million in cryptocurrency.

Following his release after serving 12 months, Nicholas Truglia was given a straightforward choice: repay the $20 million in restitution. Instead, he did the opposite. When surveillance uncovered evidence that he was actively moving cryptocurrency funds and purchasing luxury items, authorities arrested him again in May 2023 for violating the terms of his supervised release. Despite a contempt order issued by the court, he received another chance—released in November 2024 under strict conditions requiring compliance with the restitution mandate.

He squandered that opportunity. Evidence emerged showing that Nicholas Truglia had retained approximately $673,000 from his illicit proceeds and continued concealing his stolen crypto assets rather than surrendering them to his victim.

Why Judge Hellerstein Extended the Sentence So Dramatically

The turning point came when the judge reviewed incriminating footage of Nicholas Truglia speaking in a disguised voice, brazenly discussing how he would preserve his stolen cryptocurrency even after serving a 10-year prison term. This revelation of his unrepentant attitude and calculated defiance shifted the judge’s perspective entirely.

“If ten years are okay, I’ll be sentencing you to twelve [years],” Judge Hellerstein declared, indicating that Nicholas Truglia’s own words had sealed his fate. The judge ordered him transferred to the Metropolitan Detention Center for overnight solitary confinement before being moved to a correctional facility in Essex.

The severity of this sentence underscores a critical message to the cryptocurrency community: federal courts will not tolerate perpetrators who steal millions, refuse restitution, and mock the justice system. Nicholas Truglia’s case demonstrates that defiance and asset concealment dramatically amplify criminal penalties beyond standard guidelines.