Scammers and criminals have been using fiat even before BTC was introduced 12 years ago. Did that affect the reputation of fiats as currency? No. Why would it be different for BTC? Ignore the FUD that may come out of this news if I were you. Nocoiners and anti-biitcoiners can say all they want but they can't bend the fact the BTC can be used by anyone just like fiat. Use the knife analogy.
It does though, because various propoganda campaigns have been run to associate Bitcoin with crime. Look at any news publication about Bitcoin involving crime, then you'll see that most are completely biased towards the fact that fiat can also be used the same way. The only difference is, cash cannot be traced through a public ledger, where Bitcoin can be which is also something they usually fail to mention.
Ask a member of the general public, and there's a higher chance that someone associates Bitcoin with criminals, than they do with cash. I've witnessed it several times when I've heard people talk about Bitcoin, but I imagine this is fairly widespread.