He got too greedy. I have not much respect for him anyway. He painted himself as a white-hat hacker and he did a good thing by eventually returning most of the stolen BTC, but he fucked up by deciding he was going to keep 600 BTC as a reward. So much for being a white-hat.
I’ve witnessed firsthand how greed can take you over. It clouds your thoughts. Not abruptly, but subtly and slowly. You rationalize things that shouldn’t be rationalized because what you’re rationalizing wasn’t yours to begin with. You tell lies. You tell different lies to different people depending on the circumstances. The longer it goes the harder it becomes to remember what you’ve told each person. You claim these stolen items as yours in your mind which makes the pain of losing them so much stronger. It’s a vicious cycle. Eventually you box yourself in looking for a way out, except you’re desperate not to be found out. Then you want to tell everyone. It’s a hard lesson to learn, but some of us have to learn it the hard way. I did. I paid my debt to society. I moved on.
He does have an option here, though. He could return the remainder of the tokens and disappear into the night. Or the right way to handle this is he could make a deal with Liquid to return all the remaining BTC and help them secure the network in exchange for not pressing charges. It would be up to Liquid if they wanted to offer a reward. That doesn’t mean the feds won’t pursue charges on their own, but he might just get a relative pass rather than going to prison, which he absolutely will do when he gets found out and convicted if he keeps the BTC.