I don't think bike theft will go to zero, but I suspect it will drop. If I could know that I'd get $40 from Igor for any bike I stole, it's easy money. Now it will likely be harder.
I know other people could come in to fill the void, but the pure math of Igor's operation doesn't make sense. Assuming he paid $20 per bike on average, that's $30,000 spent and sitting around as inventory in his store or garage. Obviously the weed and crack helped pay the bills, but I wouldn't think starting a business like this (even if it were legal) would make much sense financially.