By Matthew Russell Lee, Patreon Substack
SDNY COURTHOUSE, July 10 – Nicholas Truglia was charged with -- and pleaded guilty to - cyber intrusion in order to steal crypto-currency.
On May 21, 2021 U.S. District Court for the Southern District of New York Judge Alvin K. Hellerstein held a proceeding. Inner City Press covered it.
Truglia was charged with "SIM swapping;" the complaint says $23.8 million were diverted. Then money was laundered.
Judge Hellerstein set a deadline of June 29 , 2021 at 2:30 pm to make motions or waive the right.
Truglia pled guilty on October 28, 2021, and was belatedly set for sentencing on November 2, 2022. Inner City Press again was there.
After a discussion of information still lacking from his counsel to Probation for the Pre-Sentencing Report, it was postponed to November 30, and he was taken back into detention. Inner City Press live tweeted here
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On December 1, Judge Hellerstein arrived at 18 months, 12 of them already served, and the six to be cut by "good time." Thread:
In August of 2023 the question was whether Truglia had failed to pay restitution, and thus whether he should be resentenced. A hearing was held in early November, with questioning about a Trezor cold storage wallet. And on November 17 the prosecutors urged the resentencing, citing "the elaborate and fraudulent scheme the defendant has pursued since sentencing in an attempt to deceive this Court, the Probation Office and his victim that he would honor that obligation."
On December 23, Federal Defenders wrote in that Truglia cannot be resentenced for failure to pay restitution, only failure to pay a fine - and stating that Truglia "has been unable to find the key that would allow him to gain access to the wallet with the Bitcoins."
Docketed on February 29, "ORDER ON CIVIL CONTEMPT as to Nicholas Truglia: Upon the motion of the Government for an order to show cause for a finding that Defendant Nicholas Truglia is in willful default of the Court's order of restitution, and for a finding of civil contempt and resentencing, it is ordered that Defendant is in civil contempt of the Court's order of restitution. Defendant shall be incarcerated until such time as he satisfies his obligations to make the restitution imposed by the Court or establishes to the satisfaction of the Court that he has taken all reasonable bona fide steps available to him to satisfy his restitution obligation. Resentencing is deferred until the next status conference, scheduled for September 17, 2024 at 11 a.m, or such earlier date as the Court orders. SO ORDERED. (Signed by Judge Alvin K. Hellerstein on 2/29/2024)."
On November 12, 2024, Judge Hellerstein ordered him released: "RELEASE FROM CUSTODY ORDER as to Nicholas Truglia. The Court having considered the length of time and the conditions in which Defendant has been jailed, and having considered that Defendant may more efficiently pursue restitution efforts if released, Defendant is hereby released from civil confinement, effective immediately, upon condition that he continue to further assist the United States Government in pursuing restitution efforts. SO ORDERED. (Signed by Judge Alvin K. Hellerstein on 11/12/2024)
On December 11, 2024 they were back at it, and Inner City Press was in the courtroom. Judge Hellerstein requested certified financial statements and set a date for re-sentencing: ORDER as to Nicholas Truglia. Re-Sentencing set for 3/19/2025 at 10:30 AM before Judge Alvin K. Hellerstein
On February 28, 2025 Judge Hellerstein docketed that Truglia "has failed to comply with the due dates for the submission of financial information." He set a March 5 deadline for submission of "details regarding the nano ledger that stores 3,196.16929720 in Bitcoin."
On June 6 Truglia's Federal Defender wrote in that re-sentencing is unjust, that he should be released after serving 13 extra months amid restitution disputes or non-performance.
On June 20 the Assistant US Attorney said he should be resentenced at the top of the guideline, citing statements on a show they have not been able to find a copy of, but have witnesses to and even a photograph of.
On July 10, Inner City Press attended, from 10:30 am to 2:30 pm - the prosecutors had found the video clip, in which a mask man said I could serve ten years in prison then come out and still have the hidden crypto.
Judge Hellerstein sentenced Truglia way above the guidelines, to 12 years in prison, instant remanded to the MDC then Essex. Thread here
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The case is USA v. Truglia, 1:19-cr-921 (Hellerstein)
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