Federal Court Extends Sentence for Crypto Criminal Over Unresolved $20 Million Restitution Debt

A New York federal judge has significantly escalated the prison term for cryptocurrency scammer Nicholas Truglia, raising his sentence from 18 months to 12 years. The dramatic sentencing extension was triggered by Truglia’s failure to satisfy a $20 million restitution order and evidence of him concealing stolen assets, marking a major legal victory for his victim, crypto investor Michael Terpin.

The Path to Extended Sentencing

Senior Judge Alvin K. Hellerstein delivered the enhanced sentence on July 10, rejecting the original conviction duration that fell within federal guidelines of 51 to 63 months. The judge’s decision was heavily influenced by troubling evidence: a recorded video in which Truglia—speaking through a disguised voice—boasted that he would retain his illegally obtained cryptocurrency holdings even after serving a decade-long prison term. This statement proved decisive in Truglia’s fate.

“If ten years are okay, I’ll be sentencing you to twelve [years],” Judge Hellerstein stated from the bench, signaling zero tolerance for the defendant’s continued defiance. Following sentencing, Truglia was remanded to the Metropolitan Detention Center for overnight solitary confinement before transfer to a correctional facility in Essex.

Background on the Crypto Theft

The roots of this case trace back to 2018, when then-25-year-old Nicholas Truglia orchestrated a sophisticated SIM-swap attack targeting Terpin. By replacing Terpin’s phone number with his own controlled SIM card, Truglia gained unauthorized access to email accounts and digital wallets, ultimately siphoning over $20 million in cryptocurrency. He then converted portions of the stolen funds to Bitcoin (BTC) and diverted a personal cut estimated at approximately $673,000.

A Pattern of Violation and Re-arrest

After initially serving 12 months of his original 18-month sentence, Truglia was conditionally released with a mandate to repay the full $20 million in damages. Instead, he used his freedom to relocate assets and purchase luxury items in apparent violation of his supervised release terms. This triggered his re-arrest in May 2023.

Despite receiving another opportunity for conditional release in November 2024, Truglia continued to defy court orders. His refusal to meet the restitution obligation—despite retaining significant liquid assets—ultimately sealed his fate, leading Judge Hellerstein to hand down the severe 12-year sentence that now stands as final.