‘You Paid Not a Cent’: Crypto Fraudster’s Sentence Jumps From 18 Months to 12 Years After Judge Cites Lavish Lifestyle and Stubborn Refusal to Repay Victim

Crypto Fraudster's Sentence Extended to 12 Years After Failing To Return Stolen Millions

A man convicted in a major cryptocurrency heist has seen his sentence drastically increased after failing to return any of the stolen funds.

Nicholas Truglia, 27, who previously received just 18 months in prison for his role in a $22 million SIM-swap scheme, will now serve 12 years after a federal judge ruled he had deliberately ignored court-ordered restitution.

Lavish Life Without A Job Raises Judge’s Ire

At a hearing held in a New York federal court, U.S. District Judge Alvin Hellerstein was blunt in his criticism of Truglia’s inaction and lifestyle.

The judge addressed Truglia directly,

“You paid not a cent, not one cent.”

The court had previously ordered him to repay nearly $20.4 million to the victim, but prosecutors said he had made no effort to comply.

Judge Hellerstein added,

“You didn’t have a job, but you lived in splendor,”

Truglia was living a luxurious lifestyle despite claiming to be financially incapable.

SIM-Swap Scheme Drained Blockchain Investor’s Crypto Wallet

Truglia had pleaded guilty in 2021 to his involvement in a SIM-swapping attack targeting blockchain investor Michael Terpin.

The scheme involved tricking a telecom employee into handing over control of Terpin’s phone number, which was then used to breach his cryptocurrency accounts.

Terpin, the CEO of Transform Group, lost $24 million in the attack.

According to court records, Truglia was specifically recruited to convert the stolen digital tokens into Bitcoin.

He was arrested in California in 2018, and during initial proceedings, authorities revealed he held over $50 million in assets, including fine art, jewellery, and cryptocurrency.

A Legal Battle Far From Over

Truglia’s legal team has criticised the extended sentence as excessive.

His lawyer, Mark Gombiner, argued in court that the ruling amounted to “an extraordinary abuse of discretion” and confirmed that they plan to appeal.

Nicholas Truglia

Gombiner also claimed that his client had surrendered all assets he could access, including money from a Wells Fargo account.

Truglia told the judge that the bulk of his remaining wealth was locked in a Bitcoin wallet he could not access.

Terpin, who attended the hearing by phone, dismissed that claim as “a giant smoke screen.”

Asset-Rich But No Restitution Paid

In a separate civil case, a court awarded Terpin $75 million in damages against Truglia.

The same year, Terpin also sued AT&T, his mobile service provider, for $224 million, blaming the company’s security failures for enabling the SIM-swap attack.

It remains a critical example of the telecom industry’s vulnerabilities in the face of digital asset crimes.

Accountability Must Mean Action, Not Excuses

This case puts a spotlight on a growing problem in crypto crime — what happens when someone claims they can’t access their stolen funds?

Truglia’s long sentence suggests courts are losing patience with delays and excuses, especially when there’s no real effort to repay what’s owed.