Manhattan Judge Warns Bitcoin Scammer of 20-Year Sentence
On Tuesday, April 29, 2025, Law360 reported that Manhattan federal judge Alvin K. Hellerstein warned a Florida man convicted of a bitcoin scam that he could face up to 20 years in prison for failing to repay $20 million to an entrepreneur whose cryptocurrency he stole. The judge’s remarks came during a hearing for Nicholas Truglia, 27, of Ocoee, Florida, whose resentencing was delayed until June 10 to allow his defense team more time to prepare.
In 2021, Truglia pleaded guilty to wire fraud, admitting he hijacked the mobile phone of entrepreneur Michael Terpin to steal his cryptocurrency. In 2022, Judge Hellerstein sentenced Truglia to 18 months in prison and ordered him to pay over $20 million in restitution. The judge noted at the time that Truglia’s promise to promptly repay the victim spared him a longer sentence. Truglia was released to home confinement in late 2022, according to court documents.
Prosecutors from the Manhattan U.S. Attorney’s Office stated that Truglia repeatedly violated the terms of his supervised release after his release. He was later jailed for contempt after failing to repay Terpin while allegedly making significant financial transactions and purchasing luxury goods. Truglia was released from custody in late 2024 but has not repaid any of the restitution, prompting the government to request resentencing.
During the April 29 hearing, Truglia’s new defense team, led by attorneys Mark Gombiner and Allegra Glashausser, raised concerns about the resentencing process. They questioned the accuracy of prior claims that Truglia controls over $60 million in assets and argued that his ability to pay restitution needed further examination. The defense also contended that resentencing Truglia, who has already served his prison term and is not on probation, would violate his double jeopardy rights, as his original sentence is final.
Judge Hellerstein rejected the double jeopardy argument but granted the defense’s request for additional time to prepare. He emphasized that he intends to proceed with resentencing and warned Truglia of the consequences of his actions. The judge referenced a letter from Terpin citing Truglia’s alleged appearance in a documentary, where he reportedly said he still had access to his bitcoin and doubted he would face a lengthy prison term. Hellerstein indicated that such statements could suggest a lack of remorse, potentially influencing his sentencing decision.
The judge noted that he has the authority to impose a sentence up to the statutory maximum for wire fraud, which could result in a 20-year prison term to protect the public. Gombiner responded that the defense would address the documentary allegations, expressing confidence that the court’s perspective would shift after further review.
The defense also argued that any penalties should be limited to violations of supervised release under separate guidelines, rather than resentencing for the original offense. Hellerstein acknowledged the defense’s position but maintained his plan to resentence Truglia, advising that they could appeal his ruling if they disagreed.
Source: Law360
