Crypto Fraudster’s Sentence Skyrockets to 12 Years in $20M Restitution Case

Nicholas Truglia, a 27-year-old convicted in a $22 million cryptocurrency fraud scheme, saw his prison sentence surge from 18 months to 12 years after failing to repay victims. U.S. District Judge Alvin Hellerstein delivered the stiffer penalty in a New York federal court, citing Truglia's "willful" disregard for court-ordered restitution and lavish lifestyle despite having no visible income.

"You paid not a cent, not one cent," Hellerstein admonished during Thursday's hearing, referencing the $20.4 million owed. The judge imposed an additional three months of supervised release, noting the defendant had "lived in splendor" while evading financial responsibilities.

Truglia's defense team called the enhanced sentence "an extraordinary abuse of discretion" and immediately filed notice of appeal. The case stems from a SIM-swapping scheme that siphoned millions in digital assets from victims—a stark reminder of the regulatory risks facing crypto markets as enforcement actions intensify.