Crypto Fraudster nicholas truglia Faces 12-Year Prison Term Over Failed Restitution

A significant shift in sentencing has occurred in the high-profile cryptocurrency fraud case involving nicholas truglia, whose initial 18-month prison term was dramatically extended to 12 years. On July 10, this decision was issued by Senior Judge Alvin K. Hellerstein of the New York federal court system. The case represents a stark reminder of how seriously U.S. courts treat violations of court-ordered financial restitution in crypto-related crimes. The underlying reason for this dramatic sentence extension centers on nicholas truglia’s failure to meet a critical obligation: repaying $20 million in damages to victim Michael Terpin, a well-known cryptocurrency investor and promoter.

The Escalation: From 18 Months to 12 Years

The transformation of nicholas truglia’s sentence reflects judicial frustration with his apparent contempt for court orders. When initially sentenced in December 2022 for his involvement in a 2018 SIM-swap attack, the then-25-year-old received a relatively modest 18-month term. This first conviction centered on a sophisticated scheme where Truglia hijacked Michael Terpin’s phone number by replacing it with a SIM card under his control, granting him unauthorized access to the victim’s email and digital accounts. Through this breach, Truglia orchestrated the theft of over $20 million in cryptocurrency.

The sentence extension far exceeds federal guidelines, which typically recommend between 51 and 63 months for such violations. Truglia’s 12-year term represents more than eight times the original punishment—an extraordinary measure that underscores the judge’s determination. What triggered this dramatic escalation? Evidence surfaced showing that nicholas truglia had systematically moved stolen funds across accounts, converting portions to Bitcoin and retaining approximately $673,000 in proceeds for himself. Most damaging was an incriminating video recording in which Truglia, speaking in a masked voice, expressed confidence that he could retain his stolen digital assets even after serving 10 years in prison.

Judge Hellerstein’s direct warning to nicholas truglia captured the court’s resolve: “If ten years are okay, I’ll be sentencing you to twelve [years].” This statement indicated the judge interpreted Truglia’s apparent indifference as a personal challenge to judicial authority. Consequently, the court doubled down, extending the prison term as both punishment and deterrent.

Criminal Actions That Sealed nicholas truglia’s Fate

The SIM-swap attack perpetrated by nicholas truglia represents a particularly insidious form of cryptocurrency theft. By gaining control of the victim’s phone number, Truglia positioned himself to intercept two-factor authentication codes and password reset emails—the digital keys to Terpin’s crypto holdings. This technique, while straightforward in execution, proved devastatingly effective in this case.

Post-sentencing conduct further complicated nicholas truglia’s legal standing. Released after serving 12 months of his initial sentence, he was supposed to focus entirely on repaying the $20 million restitution. Instead, May 2023 brought new charges when evidence emerged of him transferring cryptocurrency funds and acquiring luxury goods—clear violations of his supervised release terms. A contempt order was issued, yet astonishingly, nicholas truglia was again released in November 2024 after promising renewed commitment to meeting his financial obligations. This second release proved to be a calculated risk by the judiciary, as Truglia immediately failed to fulfill his obligations, ultimately retaining unauthorized funds.

nicholas truglia’s Path to Prison: A Detailed Timeline

Understanding the progression of this case requires examining the key dates and decisions that shaped nicholas truglia’s legal journey. The original SIM-swap crime occurred in 2018, but formal prosecution followed years later. In December 2022, the initial 18-month sentence was handed down. Following partial release after 12 months served, Truglia’s violation and re-arrest came in May 2023. A brief period of conditional freedom followed in November 2024, but this arrangement collapsed as nicholas truglia refused to meet restitution deadlines.

The July 10 judgment represented the final chapter of judicial patience, with the 12-year sentence now in effect. Judge Hellerstein ordered nicholas truglia to the Metropolitan Detention Center and placed him in solitary confinement overnight, followed by transfer to the Southern District of New York courthouse for processing and eventual transportation to a correctional facility in Essex. This severe custodial arrangement reflects the court’s determination to prevent further flight risk or financial manipulation by nicholas truglia.

The case of nicholas truglia serves as a cautionary tale for cryptocurrency fraudsters: persistent defiance of court orders and continued attempts to hide stolen assets will result in dramatically enhanced penalties far exceeding initial sentences.