Prosecute, without a doubt. In the chat transcripts, they explicitly discuss the possibility of getting caught. The perp knew the risks, and made a conscious d

Prosecute, without a doubt. In the chat transcripts, they explicitly discuss the possibility of getting caught. The perp knew the risks, and made a conscious decision to proceed. The Friend's discussion about getting paid for links reveals a pattern (albeit not in this case) of doing this for personal gain. And they also show clearly that they understand the effects of their behavior on the victims, and just don't care about it. If you want to prevent these hackers from mischief, there must be a credible threat of repercussions. Letting them go will not discourage all this guy's friends. But maybe in a similar conversation next year, when they're talking about getting caught, someone will mention "you remember last year when Xyz got caught, and he's still in jail!".