Crypto Thief Gets 12 Years: Court Cracks Down on $20M SIM Swap Fraud
A federal court in New York has issued a harsh ruling in a high-profile cryptocurrency theft case. Nicholas Truglia, previously convicted for his role in the cyberattack targeting entrepreneur Michael Terpin’s digital assets, has now received an additional sentence—12 years of imprisonment. This decision followed Judge Alvin Hellerstein’s determination that Truglia willfully failed to fulfill his court-mandated obligation to compensate the victim.
Initially, in 2021, Truglia pleaded guilty to participating in an intricate scheme wherein a group of hackers employed SIM-swapping tactics to gain access to Terpin’s cryptocurrency wallets. The perpetrators targeted over \$20 million worth of digital currency. The hackers systematically convinced telecom company employees to transfer victims’ phone numbers to their own SIM cards, thereby gaining control over the victims’ online wallets. Truglia played a key role in the operation, assisting in the conversion of the stolen assets into Bitcoin.
The trial revealed that, at the time of his arrest, Truglia possessed assets valued at approximately \$53 million, including cryptocurrency, fine art, and luxury jewelry. Despite admitting guilt and pledging to return nearly \$20.4 million to the victim, no restitution was ever made. His defense claimed he had relinquished all accessible assets, including accounts held at Wells Fargo. However, Judge Hellerstein rejected these arguments, stating that Truglia had deliberately violated the terms of the previously approved settlement.
The original sentence amounted to a mere 18 months in prison, a decision that drew considerable criticism from observers. The court’s latest ruling significantly escalated the punishment, extending Truglia’s sentence to a full 12 years. His attorneys have already voiced their objection, accusing the judge of exceeding his authority.
The case of Nicholas Truglia is being heard in the United States District Court for the Southern District of New York under docket number 19-cr-00921. It stands as one of the most striking examples of how crimes involving cryptocurrency can result in severe consequences, particularly when court-sanctioned agreements are breached.
