Broadscale, crypto seems to have had an "Eternal September" moment and I think that's where the problems really began. Back in the early days before crypto entered the mainstream, it was pretty much like any other internet project. It was cool to be able to buy a pizza with internet funny money but by then it was still pretty small and everyone knew the inherent risks.
Then came the "Eternal September" where cryto went mainstream and many people started pitching this formerly niche project as a real investment vehicle. And people bought in thinking it was like any other investment. IMHO cyrpto itself isn't bad, it's all the people that pitched it like an old school investment vehicle.
I remember getting into Bitcoin in early 2010 when the pizza thing happened. Even back then it was hyped to me as an investment and an alternative to the corrupt financial system.
There's always been an undercurrent of this stuff. The eternal September came years later, after big scams like Mt Gox had already long imploded.
I guess you could argue that it wasn't a scam because it wasn't the leadership doing the theft, but it's a bit of a meaningless distinction in the end. Lots of bitcoins were stolen, withdrawals were halted, and customers lost their money regardless.
Then came the "Eternal September" where cryto went mainstream and many people started pitching this formerly niche project as a real investment vehicle. And people bought in thinking it was like any other investment. IMHO cyrpto itself isn't bad, it's all the people that pitched it like an old school investment vehicle.