I don't think there is any way 1xbit can salvage their reputation. It is way beyond salvation now.
Of course they can. All they need to do is work with the community and address all accusations that have accumulated against them, show evidence if the players violated their terms of service, and stop further scamming... But we already know that will never happen.
1xbit has no interest maybe to increase their reputation. Because no change has been seen in their activities so far. The amount of money they are spending on marketing to get more new players shows that their purpose is not to run the business honestly. Because it is more important to solve the unresolved issues of the community than to spend that money on marketing on a large scale.