Okay, then fire him, and let him play Donkey Kong until the folks with badges show up.

I assume he would have an interest in doing well, since, as you noted earlier, it's in his interest to stop screwing people and to start getting screwed himself.  What comes around goes around.  Simon would place himself in a position to get screwed a little less if he produced as CTO.  

As CEO?  No fucking way.  If as CTO he produced the magical 16nm chip or the 28nm chip that worked and burned a watt per 50 g/hashes, well, he might win some peoples' forgiveness, assuming that present creditors are dealt into Hashfast 2.0 in some meaningful (and fair) way.

Stick to core competencies.