Quite possible that the ones found weren't all of the money she had kept from profiteering and fraudster. Many rich individuals who had a taste of money laundering would quite agree that it is never wise to put all your eggs in one basket, which goes for both investing and funnily enough money laundering too. Hopefully the money seized from this putrid excuse of a woman could be reinstated and returned to her victims in a way or another.
Cases like that can be bad publicity for Bitcoin, although it's unfair since it's a ponzi scheme (and thus a crime regardless of whether it's crypto-related), and it's not about Bitcoin at all, and not about compromising the reputation of any major altcoins either.
Also, while I think that some punishment is in order when scammers are caught, I think 90 years of prison is too tough... Why not focus on the financial part in these cases? Since they seized so much money, surely they could (although probably won't) return this money to victims. Plus, they could make her pay some big fines as well and limit access to finance-related work positions. I think such actions would be more useful to society than spending taxpayers' money and totally ruining one's life with a life sentence.
For me it could work both ways, signifying that no one is above the law, not even bitcoin owners could give some people who are skeptical about bitcoin's tough privacy and security a little bit of relief knowing that criminals and bitcoin thieves can still very well be caught with enough manpower and dedication from the appropriate sectors. Or like what you said it could also scare them from investing since their first impression of bitcoin was for criminals to launder their money into.
