Correlation vs. Causation
"I just wish that stuff like this wouldn't blow back against crypto in general, as the two have little to do with each other."
Evidence so far suggests otherwise. Correlation, of course, is not causation, but it is suggestive.
I suspect that "investing" in cryptocurrency requires a certain, um, "mindset".
I also suspect that mindset makes it more likely that the "investor" will
1) not undertake normal due diligence when selecting a financial institution to act as custodian/depository for their funds
2) fall for the classic get-rich-quick scams
Sure there's a certain portion of the population that will fall for the classic scams or hand over their money to obviously shakey institutions, but if you limit your audience to cryptocurrency speculators, I bet you're dealing with a population that has already had most of the tough marks filtered out.