Crypto Fraudster Nicholas Truglia Receives 12-Year Additional Sentence Over $20 Million Restitution Default

Cryptocurrency scammer Nicholas Truglia has been handed down a 12-year additional prison sentence for his deliberate failure to fulfill $20 million in financial restitution obligations, according to Bloomberg reporting. The case reveals a troubling pattern: despite possessing over $53 million in combined cryptocurrency, artwork, and jewelry assets, Truglia broke his settlement agreement entirely.

The Crime Behind Nicholas Truglia’s Conviction

Nicholas Truglia orchestrated a sophisticated SIM card substitution fraud scheme targeting a victim’s digital wallet. By replacing the SIM card associated with the victim’s phone number, Truglia gained unauthorized access to the account containing $20 million in cryptocurrency assets. He then systematized the theft, draining the victim’s holdings and converting the stolen funds into Bitcoin. In December 2022, Truglia initially received an 18-month sentence after pleading guilty to conspiracy to commit wire fraud. At that time, he had already served 12 months of his sentence.

Asset Holdings vs. Restitution Failure

The critical contradiction emerged during asset assessment. Court documents revealed Truglia controlled significant wealth across multiple forms—digital currencies, fine art, and luxury items—representing well over $20 million. As part of his sentencing agreement, he committed to paying full restitution to compensate his victim. However, subsequent court filings demonstrated a complete reversal: Truglia paid nothing toward his debt.

Instead, evidence showed he continued purchasing high-end consumer items worth approximately $92,000, including designer apparel, premium watches, and exclusive sneakers. The court filing pointedly noted that his consumer spending choices, combined with his evasion of any meaningful payment, demonstrated a clear intent never to honor his obligations. “His failure to account for his assets and favoring personal expenditures over restitution obligations is indicative of his deliberate intent to evade his legal debt,” the judicial document stated.

The Court’s Final Judgment

United States District Judge Alvin Hellerstein, who imposed the original 2022 sentence, determined that Truglia “deliberately circumvented law enforcement and judicial enforcement mechanisms designed to secure restitution compliance.” Consequently, Hellerstein ruled that resentencing was warranted and justified. The defense team countered that Truglia had made genuine efforts by surrendering accessible assets, including funds held in a Wells Fargo banking account. Nevertheless, the additional 12-year sentence was imposed, underscoring the judiciary’s stance on serious fraud cases involving deliberate non-compliance with financial restitution orders.