article 🚔💸 Crypto Fraudster Faces Justice: 18 Months Turned Into 12 Years for $20M Scam 💸🚔

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A Brutal Reminder: Crime in Crypto Doesn’t Pay

In a sharp escalation of punishment, a convicted cryptocurrency scammer has learned the hard way that dodging court-ordered repayments can lead to years behind bars.

Nicholas Truglia, aged 27, originally received an 18-month prison sentence after pleading guilty to his role in a notorious crypto fraud valued at $22 million. However, following his blatant refusal to return the stolen funds, a New York federal judge has now sentenced him to a harsh 12 years behind bars.

Judge Alvin Hellerstein didn’t mince words during the recent hearing. “You paid not a cent — not even a penny,” he stated bluntly, before adding three months of supervised release on top of the prison term. The judge emphasized Truglia’s extravagant lifestyle despite not having legitimate employment. “You lived in luxury without lifting a finger,” Hellerstein said.

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From SIM Swap to Prison Cell

Back in 2018, Truglia was arrested in California’s Bay Area after orchestrating a sophisticated SIM-swapping scam. By manipulating a telecom employee, Truglia and his crew gained unauthorized access to the phone number of blockchain investor Michael Terpin, siphoning away $24 million in cryptocurrency.

Truglia’s specific role? Converting the stolen funds into Bitcoin to further hide the crime’s digital footprints.

In 2019, Terpin took civil action and was awarded a staggering $75 million in damages. He also sued his mobile provider, AT&T, for $224 million, citing gross negligence in protecting his sensitive account.

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Where Did the Money Go?

During his original sentencing, prosecutors highlighted Truglia’s vast portfolio of assets — luxury watches, fine art, cryptocurrency, and more — valued north of $50 million. His defense argued that much of this wealth was trapped in a Bitcoin wallet he could no longer access.

Truglia insisted he wanted to repay the victim but simply couldn’t unlock his funds. Terpin dismissed this as nothing more than “a giant smokescreen.”

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U.S. Cracks Down Hard on Crypto Criminals

America’s law enforcement is steadily increasing its efforts against crypto-based crimes, and sentences are getting tougher:

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  May 2024: Trung Nguyen of Massachusetts was given six years in federal prison for operating a fake vending machine business as a front for laundering over $1 million in drug money through Bitcoin.

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  Earlier in May: Mohammed Azharuddin Chhipa received a massive 30-year sentence for funneling crypto to ISIS operatives. Between 2019 and 2022, he sent over $185,000 to fund terrorists, escape attempts, and fighters.

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  Upcoming: The DOJ seeks a 20-year sentence for Celsius founder Alex Mashinsky after the platform’s 2022 collapse, which froze $4.7 billion of customer assets. Prosecutors accuse him of defrauding investors out of $550 million through manipulative schemes.

These landmark rulings reflect a broader trend: U.S. courts are no longer tolerating crypto-related crimes, especially those involving scams, money laundering, or connections to organized crime.

If you thought crypto fraud was a loophole in the justice system, these cases prove otherwise. From SIM-swappers to terrorist financiers, the law is closing in fast.