Key Takeaways
- In 2022, crypto hacker Nick Truglia was sentenced to 18 months in prison and ordered to pay restitution to his victim.
- However, after he failed to make the repayments, Truglia’s sentence was hiked to 12 years on July 10.
- In court, Truglia’s lawyer said he had faced extortion in jail, prompting the judge to order that he be kept in solitary confinement overnight.
Nick Truglia, currently serving prison time for his role in a SIM swap scheme that drained over $20 million worth of crypto from investor Michael Terpin, has reportedly faced extortion from fellow inmates at the Brooklyn Metropolitan Detention Center.
The revelation was made by Truglia’s lawyer at a hearing on July 10, where Judge Alvin Hellerstein hiked his sentence to 12 years for failing to repay the victim.
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Sentence Increased to 12 Years
While Truglia was initially sentenced to 18 months in prison for his role in stealing crypto from Terpin, having already served 12 months, he was released shortly after under the condition that he pay restitution to the victim.
However, having failed to repay Terpin after more than two years, Truglia returned to court on Thursday, July 10.
The new sentence is more than double the maximum requested by prosecutors.
Responding to the sentence on X, Terpin stated: “Justice prevailed today. Now I just have to find the money he’s hiding.”
Truglia’s lawyers stated that increasing the sentence was an abuse of the court’s power, and are expected to appeal the decision.
Truglia Extorted in Brooklyn Jail
According to local media, federal defender Mark Gombiner said Truglia was extorted for $48,000 by fellow inmates while incarcerated at the Brooklyn Metropolitan Detention Center.
Against this backdrop, Truglia reportedly informed on his extortioners, potentially making him a target for attacks if he remained in Brooklyn, Gombiner argued.
In response, Judge Hellerstein ordered that he be kept in solitary confinement overnight before being transferred to Essex County Correctional Center on Friday.
Participation in SIM Swap Crypto Hack
According to prosecutors, Truglia was part of a group of crypto hackers who used SIM swap tactics to gain unauthorized access to their victims’ crypto accounts and wallets.
The evidence that ultimately led to his conviction includes his participation in an online call with other participants in the scheme.
During that call, Truglia agreed to receive the roughly $20 million stolen from Terpin into an account under his control. He then converted the stolen funds to Bitcoin and dispersed them between the group, retaining approximately $673,000 for himself as a fee, court documents allege.
While the case involving Terpin ultimately led to Truglia’s arrest, the same group of SIM swappers has been tied to a string of hacks. Other alleged victims include SMBX co-founder Gabrielle Katsnelson, 0Chain CEO Myles Danielson, and Robert Ross, a San Francisco software executive.
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James Morales is CCN’s blockchain and crypto policy reporter. He has been working in the news media since 2020, writing about topics such as payments, banking and financial technology. These days, he likes to explore the latest blockchain innovations and the evolving landscape of global crypto regulation.
With an educational background in social anthropology and media studies, James uses his platform as a journalist to explore how new technologies work, why they matter and how they might shape our future.
