1 Work with the Stacks foundation and make a network upgrade that allows you to freeze all funds in the hacker’s wallet.
2 Then mint the amount of STX that the victims lost and send it directly to them.
Upgrading a network to freeze an attacker’s coins is not unprecedented. It was done during the 2016 Ethereum DAO hack.
If this can’t happen I fully support this post: Solution Proposal - STX for STX
With all due respect, I have significant interest in seeing funds returned. However, Stacks is a decentralized, permissionless ecosystem. The Ether hardfork following the DAO hack was significantly damaging and not something to replicate. The proposal will have no support in the wider community and implementation would be more damaging than any hack or failure of an individual project. I can only assume ALEXLAB brought up the possibility as a tactic to espouse doubt in the attacker when we were hoping for a negotiation. It is unrealistic and tone deaf otherwise.