Crypto scammer’s sentence increased to 12 years for $20M debt

Nicholas Truglia, initially sentenced to 18 months in prison for SIM-swapping attacks on crypto investors, has had his sentence extended to 12 years for failing to repay over $20 million to a victim.

Truglia targeted Michael Terpin, a crypto investor and CEO of Transform Group, in 2018 through an elaborate SIM-swapping scam that compromised Terpin’s cellphone and allowed theft of his cryptocurrency.

Judge Alvin Hellerstein noted in a July 2 order that Truglia had shown willingness to repay the stolen amount at sentencing but subsequently failed to make any restitution payments.

“At every turn, Mr. Truglia failed to pay restitution and actively evaded law enforcement and judicial efforts to enforce his restitution obligation,” the order stated.

The judge also highlighted that Truglia owned assets valued at over $61 million, far exceeding the restitution amount, yet made no payments despite a signed consent order.

The initial judgment included 18 months imprisonment, three years of supervised release, and restitution obligations.

SIM-swapping involves transferring a victim’s phone number to a different SIM card, enabling the scammer to intercept authentication messages from crypto exchanges and banks.

Truglia’s 2018 arrest followed a series of SIM-swapping attacks targeting investors in California’s San Francisco Bay Area.

Following the theft, Terpin filed a $224 million lawsuit against his wireless carrier AT&T, alleging negligence in allowing the compromise.

Terpin lost $24 million in cryptocurrency to the scam.

He also pursued a $75 million civil lawsuit against Truglia, winning full damages in 2019.

The extended sentence underscores the judiciary’s stance on enforcing financial restitution and deterring cybercrime involving digital assets.