You are wasting time by speculating what Danny had done before this venture this is irelevent
Important is what he is doing now
Agreed, "where is Danny now" is the most important question; but the police will not need our help in that.
On the other hand, what he did before going to Cyprus is relevant because it may help us understand how this mess took off and got so far. Which in turn may help people recognize and avoid similar disasters in the future.
Part of the reason for the MtGOX disaster was the "libertarian pilosophy" that has come to be associated with bitcoin. In that philosophy, a shady past, running afoul of the law, lack of proper accounting, financial opaqueness, and avoidance of regulations are not defects; they may even be seen as virtues. Thus, in particular, MtGOX's clients were not bothered by Karpeles's troubles with the FBI (that apparently made him avoid traveling to the US), or the fact that his exchange was completely unregulated and unaudited. They did not think of checking Karpeles's past; and even if they did, they would probably not object to what they would have found.
As long as bitcoiners continue to think that way, the already long list of bitcoin scams and failed-from-the start bitcoin ventures will only continue to grow.