No he does not deserve a second chance. He stole money, then acted like it was normal and now he's trying to say it was because Bitcoin rose in value? Bull shit, he just stole money.
But throw your money away any way you like. Personally I wouldn't lend him a fraction of a penny. Ever.
STOLE money?
He took out a loan. In USD terms he paid it back, in BTC terms he hasn't due to the value of BTC rising 26x. He still acknowledges the debt exists, he still attempts to repay it. Yes, it's his fault for getting a BTC denominated loan, he knew this risk was possible, but being very late repaying a loan is not stealing, defaulting on a loan isn't "really" stealing either although it is likely scam-tag worthy.
It would be stealing if he obtained the loan by lying, which he didn't, he told the lender the truth the lender knew the risks and it didn't work out, the lender is partly at fault in a way.
I do think that one day he will repay squall's loan, he repaid all the other loans.
Defaulting == stealing (and he was acting like it was normal which made it that much worse). He will be unable to repay Squalls loan as debt keeps compounding. May be some day Squall will accept a settlement but Dank will always be a thief.