I don't know many of the relevant details, but I am not at all surprised that this happened. If you look at the comparators in the tweet above, they share a common bottom line, which is that someone figured out how to use the opacity of a new and poorly understood technology to bilk people out of money, thus making an entire industry look bad, even the guys who are trying to play by the rules. With Enron, it was energy deregulation; Lehman, financial derivatives; and Theranos, biotech, which is probably the easiest to bullshit about, because it's about as transparent as a brick wall to those who aren't in the industry.

I think Crypto probably falls somewhere in between derivatives and biotech, given that it has the obvious financial engineering aspect, but wrapped in a tight shroud of techno-Utopia, which is exactly the place you expect bad actors to act. I don't think veen's Mt. Gox comparison is apt, because IIRC that was a hack...some suggestion of an inside job maybe, but a hack/theft nonetheless. That's an easy to digest, a story as old as time. This is deeper by a long shot, and I say that as someone who has barely scratched the surface...he had a sports arena named for his company FFS. In the popular domain, it was.