If he was LE, then he did a very good job. All the SR arrests, including the corrupt agents are based on VJs work as the "first to go in" then. He does the "dirty" work to get inside the tagets enterprise, install other agents as mods and coders, influence the target and lead his actions until his arrest. This is how it works and this is pretty much what I believe VJs role was.
VJs account was created shortly after the Gawker article came out, that brought a lot of attention, also that of LE.
We all know that LE has endless ressources to do their job and one thing they always have as a tool are 0-days. At that time it was this bitcoind exploit, that was the key for VJ to get Ross' respect and later access to the sites source code and servers. After he had gained trust, he gave Ross a lot of work to do, that would be too much for Ross, that he would need people to help him. This brought Ross in the need to look for staff and this was the point where LE brought their agents in, to start the "official work" which lead to the arrests of Ross, a lot of vendors, some mods and also the corrupt agents.