Nicholas Truglia Receives Additional 12-Year Prison Sentence for Unpaid $20 Million Restitution

Cryptocurrency scammer Nicholas Truglia faces extended incarceration after being handed down a 12-year prison sentence for failing to fulfill restitution obligations. The newest judgment, announced this week, compounds an earlier 18-month prison term Truglia received in December 2022, underscoring judicial frustration with his refusal to compensate victims of his fraud scheme.

The original case centered on Truglia’s participation in a sophisticated theft operation targeting a cryptocurrency holder’s digital assets. Using a SIM card swap attack—a technique where fraudsters manipulate mobile carriers to gain control of a victim’s phone number—Truglia and accomplices gained unauthorized access to the target’s wallet containing $20 million in cryptocurrency holdings. The stolen funds were subsequently converted to bitcoin and moved through the conspiracy network.

How the SIM Swap Attack Drained Millions

During his initial prosecution, Truglia pleaded guilty to conspiracy to commit wire fraud. Court documents revealed he had already served 12 months of his original 18-month sentence when the sentencing occurred. The defendant agreed to pay restitution exceeding $20 million, a figure based on forensic investigation showing Truglia controlled over $53 million in combined assets including cryptocurrency, fine art, and jewelry at the time of the agreement.

Pattern of Evasion and Continued Luxury Spending

Despite the restitution obligation, subsequent legal filings demonstrate Truglia invested zero dollars toward victim compensation. Instead, court documents from April 25, 2024, documented Truglia’s purchase of approximately $92,000 in luxury merchandise—including designer hoodies, premium watches, and high-end sneakers. This spending pattern proved particularly damaging to Truglia’s credibility in court.

United States District Judge Alvin Hellerstein, who issued the original 2022 sentence, issued a July 2024 court declaration stating that Truglia “failed to pay restitution and actively evaded law enforcement and judicial efforts to enforce his restitution obligation.” The judge concluded that additional sentencing was “appropriate” based on this demonstrated pattern of non-compliance.

Defense Arguments and Legal Outcome

Truglia’s legal team mounted a limited defense when challenged, arguing that their client had contributed to restitution by surrendering “every valuable asset he has access to,” specifically referencing the liquidation of all funds held in a Wells Fargo bank account. However, given the scale of assets originally documented and the minimal actual payments, this argument proved insufficient to sway the court’s determination regarding Nicholas Truglia’s willful evasion of his legal obligations.