If I were in his shoes, I would rather spend $1 million for charity purposes during this pandemic. In that way, I would respect him even more despite meeting him a few times in person last year in Hongkong and Taiwan.
More people will respect his decision if he donates his money for charity purposes, especially we are still in the Covid-19. He will get more appreciation from the public, and he can also introduce about bitcoin because many people will know and search about him. When people see that he is one of many people behind the crypto world, people will gain enthusiasm to search for more info, and who knows, he can be a trendsetter in the crypto world. We don't know what his reason to do that because I think it is hard to reveal the hackers.
He shouldn't get involved in this matter I guess as witter will look into it and also will be having all the IP logs and other data on them, so Twitter will already be looking into those hackers. This bounty will probably won't go to someone. Moreover Charity sounds right way to help other people with this huge amount of money because the loss that incurred due to hackers isn't that big if you compare it with other data hacks and other scams in the past.