I have it on good authority that a Paypal representative and their legal team provided evidence to the Grand Jury about MegaUpload long before indictment was unsealed and the raids occurred. The conclusion that can be drawn from this is that the prosecutors wanted Paypal to act business as usual so as not to jeopardize any action pending.
If there is any chance that Oron is currently being investigated then Paypal may continue processing so as not to tip them off about pending prosecutions.
I would suggest every report to Paypal about Oron is beneficial, however don't be surprised if action isn't immediate should other things be afoot to deal with them.
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