It is not because of Bitcoin put her in jail but it was a sort of money laundering. That won't give her an excuse as she commits a crime and it is not just a small crime but big enough to go to jail.
If she does nothing evil, even if she shows it to the authorities nothing happens to her. I think she deserves that as she can't be happy while others are suffering and this serves as a lesson to other individuals who are also committing the same crime to stop it.
The law clearly states what constitutes a crime. Bitcoin is not included in the concept of crime, so the use of Bitcoin by people who commit crimes does not indicate that Bitcoin is something wrong. There is a punishment for doing things that are crimes in the law. Trading Bitcoin is prohibited in some countries, but in most countries there is no prohibition specified by law. In many countries, you cannot shop with Bitcoin, but you can trade Bitcoin on exchanges.
This is easy to prove if you haven't done anything bad. If you are going to invest or trade with Bitcoin, you should check whether this trade or investment is regulated by law in your country.