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A convicted crypto fraudster is heading back to prison — this time for 12 years — after trying to outsmart the justice system the same way he outwitted his victims.
Nicholas Truglia, once dubbed the “crypto con man of Wall Street,” saw his 18-month sentence explode into a decade-plus prison term after repeatedly failing to repay over $20 million in stolen funds to investor and PR firm CEO Michael Terpin.
The decision, handed down by Judge Alvin Hellerstein, came with sharp criticism. “At every turn, Mr. Truglia failed to meet his obligations and actively evaded enforcement,” the court ruled on July 2. Despite possessing assets reportedly worth more than $61 million, Truglia had paid nothing to his victim.
The High-Stakes Hack That Made Headlines
Truglia’s notoriety stems from a 2018 SIM-swapping heist, in which he hijacked Terpin’s phone number and drained $24 million in crypto — a theft so bold it triggered a landmark $224 million lawsuit against telecom giant AT&T for alleged negligence.
Using SIM-swapping — a tactic where a criminal convinces a carrier to transfer someone’s phone number to a new SIM card — Truglia bypassed two-factor authentication and gained direct access to crypto wallets and private data.
The theft was part of a larger campaign in the San Francisco Bay Area, where Truglia allegedly targeted multiple high-net-worth investors using the same tactic.
A Warning Shot to the Industry
While Truglia was convicted of wire fraud in 2022 and ordered to pay restitution, his failure to comply has now made him a legal cautionary tale in the crypto world. The judge also pointed out that Truglia had actively hidden assets to avoid repayment, violating the terms of his supervised release.
“The sentence isn’t just about punishment,” said one legal analyst. “It’s about sending a message: crypto crimes are real crimes — and restitution isn’t optional.”
The Bigger Picture
SIM-swapping has become one of the most dangerous social engineering threats in the digital finance ecosystem, with attackers exploiting the weakest link — telecom security. The have long warned crypto users to use hardware wallets, avoid SMS-based authentication, and stay alert to social engineering tricks.
