Nicholas Truglia, a crypto scammer initially sentenced to 18 months in prison in 2022 for SIM-swapping attacks against crypto investors, has had his sentence significantly increased to 12 years. The sentence was extended due to his failure to pay over $20 million in restitution to Michael Terpin, a crypto investor and CEO of the public relations company Transform Group, who was one of Truglia's victims in a 2018 scam.

Judge Alvin Hellerstein issued an order on July 2, stating that Truglia had demonstrated a willingness to repay his victim at the initial sentencing. However, the order further noted that "At every turn, Mr. Truglia failed to pay restitution and actively evaded law enforcement and judicial efforts to enforce his restitution obligation". Despite evidence presented during the original sentencing indicating that Truglia possessed assets worth over $61 million, far exceeding his restitution obligations, he made no payments.

Truglia's original conviction stemmed from one count of wire fraud related to an elaborate SIM-swapping scam used to compromise Terpin's cellphone and steal his cryptocurrency. SIM-swapping involves transferring a victim's phone number to another SIM card, allowing the scammer to receive authentication messages from service providers, including crypto exchanges and banks.

In 2018, Truglia was arrested for targeting investors in the San Francisco Bay Area using SIM-swapping tactics to steal cryptocurrencies. That same year, Michael Terpin filed a $224 million lawsuit against AT&T related to the SIM swap and subsequent loss of cryptocurrency.

In addition to the 12-year prison sentence for welshing on his debt, the initial judgment included three years of supervised release. The significant increase in Truglia's sentence underscores the court's commitment to ensuring that victims of cybercrime receive restitution and that offenders are held accountable for their actions. The case also highlights the growing problem of crypto-related fraud and the methods employed by scammers to steal digital assets.

Cases like Truglia's serve as a reminder of the risks associated with cryptocurrency investments and the importance of safeguarding personal information to prevent SIM-swapping and other forms of cyber theft. Law enforcement and regulatory bodies are increasingly focused on combating crypto fraud, as demonstrated by the recent sentencing of two individuals in the UK to a combined 12 years for a £1.5 million crypto scam. These individuals defrauded at least 65 investors between 2017 and 2019 by cold-calling victims and selling fake crypto investments.