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Settle for $10,000 and call it a day.
there's really no reason to do that. or for Moneymaker to pay this guy a single cent.
When he decides he's not going to pay there is nothing he can do about it. Well, he could say "i'll post online that you didn't pay me!" but that's already happened.
This really isn't that complicated. If MM had won $25,000 from this guy he would just be at the back of the line, in the same boat as the people he already owes $40,000 to from booking bets he doesn't have the money to pay out.
Jason Young booked bets he couldn't cash if they paid off. In his scam he ALMOST broke even, Moneymaker found out he was getting freerolled, so he shouldn't think about paying.
Case is pretty much closed.
P.S. Moneymaker don't be dumb and agree to arbitration thinking about not taking a hit to your "reputation" in poker. no1 who would be in a position to make any decisions affecting your life would know/care about this.