If he took the proceeds from the auction, put it in bitcoin and hodl'd for a year, then he could pay everyone back maybe
Bitcoin's price would need to grow 1,000 times in a year. And even if it were possible, it would only be in fiat terms. Someone who lost 1 BTC would only be awarded $600, not the $600,000 that they actually deserve.
Good point. Does anyone know if Mt Gox have to reimburse creditors in terms of Bitcoin or fiat?