Crypto Scammer Gets 12-Year Sentence After Breaking Restitution Deal
Nicholas Truglia, convicted in SIM-swap scheme, refused to repay $20M to investor
New York — July 11, 2025: A man once known for flaunting his stolen crypto wealth is now facing 12 years in federal prison, after failing to pay restitution to one of his victims.
Nicholas Truglia, initially sentenced in 2022 to just 18 months in prison for a high-profile SIM-swapping scam, saw his punishment multiply on Thursday after reneging on a court-approved restitution agreement. Despite evidence that he had more than $61.8 million in assets, he refused to return the stolen funds.
From 18 Months to 12 Years
The judgment, issued by Judge Alvin Hellerstein, pointed to Truglia’s blatant disregard for the court order.
“At every turn, Mr. Truglia failed to pay restitution and actively evaded law enforcement and judicial efforts,” Hellerstein wrote in a July 2 court order.
At the center of the case is Michael Terpin, CEO of Transform Group, a PR firm specializing in crypto. In 2018, Terpin lost $24 million in cryptocurrency after Truglia used SIM-swapping tactics to seize control of his phone and digital wallets.
Although Truglia signed a restitution deal and admitted to wire fraud, he made zero payments, prompting the federal judge to dramatically increase his sentence.
Court order for the resentencing of Truglia. Source: PACER
Terpin Speaks Out: “Turning Point for Crypto Justice”
In a statement shared with Cointelegraph, Terpin welcomed the ruling:
“This is a turning point in how the legal system views the theft of cryptocurrency.”
The court was shown a Vice on Showtime interview during sentencing, in which a masked Truglia bragged that he could keep the stolen funds. The video reportedly had a significant impact on the court’s decision.
SIM-Swapping Explained: A Gateway to Crypto Theft
SIM-swapping is a type of social engineering attack where scammers transfer a victim’s phone number to a new SIM card, gaining control of two-factor authentication texts tied to bank and crypto accounts.
In 2018, Truglia targeted several crypto investors in California’s Bay Area, including Terpin. That same year, Terpin filed a $224 million lawsuit against AT&T, accusing the telecom giant of negligence in allowing the breach.
Terpin was ultimately awarded $75 million in damages in a 2019 civil lawsuit against Truglia — an amount that remains unpaid.
Crypto Fraud Still Rife as Courts Tighten Sentences
While SIM-swapping remains a growing threat, this case may signal a shift in how U.S. courts treat digital asset crime. The added three years of supervised release imposed by the court aims to ensure long-term compliance — assuming Truglia ever pays up.
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