Nicholas Truglia, a man already in trouble for stealing cryptocurrency, just received an extra 12 years in prison. A federal judge decided he needed more time because he never paid back the over $20 million he owed his victim. Even though he promised the court he would, Truglia didn’t give back a single dollar.
This whole mess started back in December 2022. That’s when Truglia was first sent to jail for 18 months. His crime involved a big scam where he stole a digital wallet holding about $20 million in crypto. He got caught after using a trick called a “SIM swap.” This is when someone takes over your phone number, often by fooling the mobile company. Once he had control of the phone, he could get past security checks and drain the victim’s digital money. He then turned the stolen crypto into Bitcoin. This was a notable scam, reported by major news outlets like Bloomberg and The Block.
A Broken Promise
When Truglia first pleaded guilty to wire fraud, he made a deal. Part of that deal was paying back more than $20 million to the person he scammed. Court papers from that time showed he had plenty of money, around $53 million. This included more crypto, valuable art, and jewelry. So, paying back the victim seemed like something he could easily do.
But as the next year passed, Truglia didn’t pay anything. Documents filed in court on April 25 showed something different. Instead of sending money to his victim, Truglia spent about $92,000 on fancy things. He bought designer clothes, expensive watches, and special sneakers. This showed a clear choice: luxury items over his legal duty.
Court documents made it plain. They stated Truglia’s refusal to show what he owned, and his choice to buy lavish goods instead of paying his victim, proved he had no intention of making good on his promise.
More Prison Time
Because Truglia didn’t keep his word, Judge Alvin Hellerstein decided his first sentence wasn’t enough. On July 2, the judge wrote that Truglia had “actively avoided” what the court and police tried to do to make him pay. This meant a new sentence was needed.
Truglia’s lawyers tried to fight this. They said their client had tried to pay, giving up “all valuable assets” he could reach. This included the money in a Wells Fargo bank account. His legal team also argued that a new sentence would go against his basic rights, like fair legal treatment and protection from being punished twice for the same crime.
This case really highlights a big challenge for authorities. It’s tough to make people pay back money in financial crimes when crypto is involved. Even when someone promises in court, and seems to have the funds, some will still try to get out of their legal duty.