I think nefario's life since leaving Sun Systems is a worse punishment than any government can place on him.
Nefario sacrificed a lot in his personal life to make GLBSE.
It's sad because no matter how good he made it the fundamental thing GLBSE was doing was illegal.
I'm glad he decided to step back and reevaluate what he was doing.
I hope his very public involvement in bitcoin has not made him unemployable.