Crypto Hacker Who Defaulted on Restitution Gets 12 Years

The U.S. justice system is increasingly showing a tough stance on crypto-related crimes, not only in initial convictions but also in supervising the enforcement of sentences. The story of hacker Nicholas Truglia is a prime example of the serious consequences of not complying with a judgment to compensate victims.

According to a Decrypt report on July 3rd, a New York federal judge will re-sentence Nicholas Truglia to a term of 12 years in prison. Truglia was previously convicted for carrying out "SIM swap" attacks—a sophisticated fraud method where criminals trick mobile carriers into taking control of a victim's phone number, thereby bypassing two-factor authentication to drain their crypto assets.

1. A Broken Deal

Truglia's legal story became more complex after he was released in 2022 after serving an 18-month prison sentence. A key condition of his plea agreement was the payment of $20 million in restitution to the victims of an attack he carried out in 2018.

However, Truglia failed to fulfill this obligation. Court records show he was required to pay $12.1 million by December 31, 2022, and the remaining $8.3 million by January 30 of the following year. His failure to make these payments on time prompted prosecutors to take action.

Notably, prosecutors pointed out that during the initial sentencing hearing, evidence showed Truglia's personal assets exceeded $53 million. This figure indicates he had the full ability to pay the restitution but willfully chose not to, an act that shows disregard for the court's order.

2. A Harsh Sentence

The new 12-year prison sentence is an extremely severe increase from the original 18-month term. It shows that the judge is punishing not only the original crime but also the subsequent failure to make the victims whole.

This decision sends a powerful message to the crypto criminal community: hiding illicit gains and evading financial responsibilities after a conviction will lead to consequences far more severe than the original sentence. It also affirms the efforts of law enforcement agencies to not only capture criminals but also to ensure that victims of digital asset fraud receive justice.