He pays, there are no guaranteed pays in the contracts, so I think he still fulfills his contracts. I doubt if he can be prosecuted at this moment.
I'll just wait until payments stop and no solution is offered before I take action. The fact that he still pays, that he stopped selling hash and that he's trackable gives me a hope. I think the word 'Ponzi" and "scam" is often used too soon anyway in the bitcoin world (mt.Gox trauma). There could be plenty of reasons why this is happening, I hope he'll explain some day what happened and why. I hope even more that his customers will be refunded.