You must be kidding? Misappropriation of funds is a crime and should be punished by law. Nothing to do with GLBSE beeing illegal. He just ran away with our funds. Thats how I see it.
From what I understand he passed these funds through to fraudulent asset issuers. He was just a middleman. It's a bad idea, but he didn't really profit that much himself.
I hope we can identify and pursue the asset issuers to recover the investors' money.
If he doesn't pay back a dime nefario won't get anything out of this. Perhaps a couple thousand bitcoins, but thats less than a years salary for a normal person.
Ideally you would pursue the asset issuer. If they can't be located I guess we can assume it is nefario.