To be blamed most is the India's central banks failure to put monitoring mechanisms in place. learning from this incident they ought to tighten their rules. This is a lesson that no investment is 100% safe be it crypto or not.
Absolutely! Not only the Central Bank of India is to be blamed but I guess the Government of India and all its regulating bodies that have failed to do their part should be blamed as well!
But on the brighter side, I assume the Indian Government will further strengthen and improve their regulations and learn lessons from this incident to prevent it from ever happening again in the future or at the very least minimize the possibility of its occurrence - thus making their banking system more robust to retain the confidence of its stakeholders.
I don't know how you can blame the government when this scam was perpetrated by a few high ranking bank official with no links to any of the political parties. I would rather congratulate the government for acting quickly and arresting the accused before they were able to flee to safe heavens (as many of the criminals have done in the past). The government also froze the stolen assets, so that the account holders could be reimbursed for their losses.
As per the latest updates, the government has recovered around 80% of the stolen amount and this will be reimbursed to the users sometime soon. And many of the scammers are likely to forfeit their own fortunes, in return for a milder punishment. Therefore I expect the victims to be compensated in the range of 90% to 100%, and here I would be rather praising the government rather than complaining about it.