No, it is a  scam.

The same operator scammer used to run Easzpay, and then had MtGax for about two days before it got shut down.

 - http://bt.irlbtc.com/view/98251.0

is OP said scammer trying to get google linked?

We did, but hosting provider is in China with US servers, but US company won't do anything. Registrar is also in China.

In the meantime you can still help: http://www.google.com/safebrowsing/report_badware/?url=http://mtgix.com/

is there not the icaan or some asscoiation  responsible for ALL web domain re-sellers  ?
if the chinese  registrar allows them to operate after being reported they should be fined or suspended from
being able to sell domains

It might be worth the $10 to do a charge (1 bitcoin ~= $10), paying with credit card, and then issue a chargeback when the bitcoin isn't delivered.  Full screenshots taken.

That way PayPal will be more likely to suspend the account and freeze the funds.

The fact that the account hasn't been frozen yet by PayPal is something utterly bizarre to me.  This is the third site using the same account.  I was thinking perhaps this might be a honeypot for catching carders perhaps as one plausible explanation.  The spelling mistakes, etc., all a disguise perhaps?

Who knows.

Hence "with credit card".  Which means you want to drain the account first before doing this.  And probably not from an account that has a bank account linked.  As a courtesy to PayPal (and to protect from further griefing by PayPal) you might wish to go through PayPal's dispute method first.  But if they don't comply, then you escalate it to the card issuer.  You probably won't want to carry a balance with PayPal again after doing that though.