It's been almost a week since the couple's arrest and I'm following this news from time time for some development. In my opinion, both camps (suspects and victims) can be blamed for pulling Bitcoin down.
Suspects --- Using the BTC name to lure investors because it is the current trending type of investment.
Victims --- As per interviews, a spokesperson of a group that combined their investment into a total of almost $5M said that, "they were attracted to invest due to the fact that Bitcoin is the real deal and with what NewG is offering who can't refuse as it sounds pretty convincing". Also, they prefer to grow their money in an easy way instead of trading.
As I have stated above, suspects pulling down Bitcoin's representation because they use it into their illegal activity. While the victims, due to their ignorance and lack of initiative to make their own research migh cause an enigma or doubt to people who were just starting to become interested in entering (invest) the digital market.
There's a high possibility that this news will turn out like what you've said (suspects and victims actions make Bitcoin price got decreased). Even though from my perspective it's kinda irrational. First and foremost, this kind of scam can happen to any investment or asset or project, not exclusively to Bitcoin, that's why blaming Bitcoin for the victim's faults is kinda misleading. The same thing is true regarding the scammers, they can use any kind of things to scam people.
If there's a follow up for this news, I think it should be about how people should be cautious in any kind of investment that he wanted to join in. However, most media will use this issue for their own interest, not the truth.