The SEC might not care about a virtual market though. I'm not defending GAW, but the law is trailing so far behind, PayCoin might as well be the equivalent of in-game gold in an RPG, baseball cards, coupons, or bottlecaps.  They might not really care about a new virtual currency... They might get a slap on the wrist for being a money transmitter, if they didn't have that license with FINCEN. If GAW created the market and a virtual currency, that's not much different than selling parker brothers monopoly money on ebay.

There's a thread somewhere around here about reporting them as a ponzi, that would probably carry the most weight and get the most attention from the feds to be taken seriously.