Crypto Scammer Gets 12 Years
Crypto Scammer Receives 12-Year Sentence for Defrauding Investor
Nicholas Truglia, convicted of orchestrating a significant cryptocurrency scam, has been sentenced to 12 years in prison. This sentence significantly surpasses the initial 18-month term, primarily due to Truglia's blatant disregard for a $20 million restitution order to victim Michael Terpin.
Truglia's scheme involved a sophisticated SIM-swapping attack, resulting in $24 million in losses for Terpin, a blockchain investor and CEO. The attack allowed Truglia and his accomplices to gain control of Terpin's phone number, granting them access to his cryptocurrency accounts.
Judge Highlights Lavish Lifestyle and Evasion
Judge Alvin Hellerstein cited Truglia's opulent lifestyle and complete failure to make any restitution payments as key factors in the increased sentence. Despite possessing significant assets, including over $60 million in cryptocurrency, art, and jewelry at the time of the initial sentencing, Truglia made no effort to repay Terpin. The judge explicitly stated, "You did not pay a cent, not one cent."
Truglia's defense argued that his assets were inaccessible, primarily tied up in a Bitcoin wallet he couldn't unlock. However, Judge Hellerstein rejected this claim, characterizing Truglia's actions as intentional evasion of both law enforcement and the court's restitution order.
SIM-Swapping and the Legal Ramifications
The SIM-swapping attack involved deceiving telecom employees to transfer Terpin's phone number to a SIM card controlled by the hackers. This allowed them to bypass security measures and steal his cryptocurrency.
Truglia initially pleaded guilty to wire fraud in 2021, receiving a three-year supervised release term alongside the original prison sentence. Terpin also successfully pursued a civil suit against Truglia, resulting in a full damage award, and a separate $224 million case against his wireless carrier for negligence.
Truglia's legal team plans to appeal the 12-year sentence, calling it an "extraordinary abuse of discretion." This case underscores the growing severity of penalties for large-scale cryptocurrency theft and the importance of robust security measures in the crypto space.
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