Indeed, this definitely has a negative impact with people looking to get involved with crypto.

On a positive note, (and it's still not really positive at all) this tends to happen with 3rd party handlers of crypto more often than not, and not directly on chains. Steem has a good reputation at this point with being an environment where you can confidently know your funds are safe as long as your keys are safe (I tell everyone to never keep the master password on an internet connected machine, and keep a few backups, because master key can change all keys, and is the only key with this authority. Phishing attempts happen and get people sometimes.)

This is why I don't keep any funds on exchanges, and really, I am all Steem anyway, so.. No interest in exchanges except for maybe some low level trading in the future.