Investors BTC ---> Ponzi ---> His Exchange Account ----> USD in his checking account.
I would imagine the above connection to be hard to prove.
Really? With the exchange account in his name? To withdraw $150K would require full KYC and docs.
To seize assets you require a warrant and that would require proving at least to a judge that there is sufficient cause.
Now if he had kept it all as BTC and sent them to a variety of encrypted and brainwallets that would be a lot harder. Then again at least according to the press release Pirate was an idiot. I mean he lost the lion's share of what he stole.