- Nicholas Truglia has been resentenced to 12 years in prison for willfully failing to repay $20 million in stolen cryptocurrency
- Truglia originally received an 18-month sentence contingent on full restitution to the victim, Michael Terpin
- Despite having sufficient assets, Truglia has not repaid any of the funds, prompting a harsher penalty
A New York federal judge has resentenced Nicholas Truglia to 12 years in prison after determining he willfully failed to repay nearly $20 million in stolen cryptocurrency to the victim, Michael Terpin. Truglia’s new sentence more than doubles the federal guideline of 51–63 months after he reneged on a restitution deal tied to his initial 18‑month term. Prosecutors relied heavily on courtroom video evidence showing Truglia boasting about shielding stolen crypto even if jailed for a decade, and the judge seemingly noted these boasts.
From 18 Months to 12 Years
Nicholas Truglia was convicted in 2021 for participating in a 2018 SIM‑swap scheme that hijacked over $20 million in crypto from Terpin. He was initially sentenced to 18 months in prison in December 2022, but this sentence came with a strict condition: that he repay more than $20 million in restitution. Despite having assets reportedly exceeding $50 million, including crypto, art and luxury items, he paid “not one cent,” according to Judge Alvin Hellerstein. That failure prompted the judge to impose a significantly harsher 144‑month sentence.
During the sentencing hearing, the court highlighted Truglia’s continued movement of funds and lavish spending even after his release; prosecutors noted he transferred crypto and purchased luxury goods instead of paying restitution. Crucially, video evidence, introduced in court, showed Truglia boasting that crypto couldn’t be seized like bank-held funds, saying he could hold onto it “even if I’m in jail for ten years.” Terpin described the moment as the case’s “Perry Mason moment,” signaling a turning point in how courts address crypto theft.
Truglia’s Lawyer Will Appeal
Judge Hellerstein’s decision reflects a broader crackdown on cryptocurrency‑related crimes, signalling that evading restitution with digital assets won’t be tolerated. Satoshi Nakamoto faker Craig Wright should pay attention: he owes W&K Info Defense LLC almost $144 million following a 2021 court defeat in the U.S. and hasn’t paid a penny of it. Truglia’s lawyer, Mark Gombiner, asserted the sentence constitutes “an extraordinary abuse of discretion,” and intends to appeal. Federal prosecutors viewed the decision as a necessary deterrent against misuse of inaccessible wallets and lavish spending at victims’ expense .
Truglia is expected to be remanded immediately, serving out the newly imposed 12‑year term and additional supervised release. Even as crypto crime enforcement ramps up, with recent cases involving money‑laundering rings and terrorism‑linked payments, the Truglia precedent may mark a pivotal moment in holding digital asset thieves accountable, especially when they refuse to compensate their victims.
