New York, July 10, 2025 — A federal judge in Manhattan dramatically increased the prison sentence of Nicholas Truglia to 12 years, citing his deliberate failure to repay over $20.4 million in restitution tied to a high-profile 2018 SIM-swapping crypto theft.

🚨 From Lenient Beginnings to Stern Justice

• Originally, Truglia pleaded guilty in 2021 to wire fraud after participating in a SIM-swapping scheme that led to the theft of more than $20 million from crypto investor Michael Terpin.

• He was sentenced in December 2022 to 18 months in prison (with 12 months credited served) and ordered to repay $20.4 million.

💰 Total Assets & Failure to Repay

• Prosecutors and Judge Alvin Hellerstein found that Truglia possessed around $53 million in assets, including crypto, art, and jewelry, yet paid nothing toward restitution.

• He allegedly transferred stolen funds, converted them to Bitcoin, and pocketed around $673,000.

🎥 The Defining Moment

• A video clip played in court, showing Truglia speaking in a mask, claiming he could "get away" with keeping his stolen crypto despite prison, which greatly influenced the judge’s harsher sentence.

⚖️ Judge’s Verdict & Legal Pushback

• Judge Hellerstein called out Truglia’s non-payment: “You paid not a cent, not one cent.”.

• The 12‑year sentence far exceeds federal guidelines, which typically recommend 51–63 months, and includes an additional 3 months supervised release following incarceration.

• Truglia’s legal team has already promised to appeal, describing the escalation as an "extraordinary abuse of discretion".

🔒 Broader Implications for Crypto Crimes

• This case signals the judiciary’s tougher stance on crypto-related fraud, especially in scenarios where orders for restitution are blatantly ignored.

• SIM-swapping continues to be a serious threat: the FBI reported more than $25 million in crypto losses from SIM-based attacks in the past year alone.

🧾 Summary of Key Details

🔍 Why It Matters

This landmark ruling underscores that digital asset theft is treated with the same gravity as traditional financial crimes. Refusing to compensate victims not only invites longer jail time but may also spark a broader crackdown on crypto fraudsters. It’s a clear signal: compliance with restitution isn’t optional, and playing possum won’t escape accountability.