It is confirmed that the account we got stopped at bittrex was allowed after security check to continue trading. We have tracked transaction to this account to the cold wallet at cryptsy. Bittrex says that the wallet was not stolen property so all we can gather from that is it was being sold on be hand of solvency agents (still a guess, bittrex claims client confidentiality).

The dump was mostly sold to members of the dev team and we are happy this huge wallet is gone to distribution and not hanging as a threat of a huge dump any more.