Krishna Tube 3 years agoNo. This was not the cause of the fall down of ISKCON. This was a PR stunt. Just see. Hare Krishnas on all the TV news channels in New York for weeks. It caused so many people in New York to chant Hare Krishna, to think about Krishna. So this is the test of preaching actually. If it is getting the people to chant Hare Krishna, to remember Krishna.
The whole New York City was concerned about the Krishna santas for weeks.
However, it was discussed by ISKCON leaders with Srila Prabhupada in Mayapur in 1977. GBC had already decided to ban it, dressing as Santa Claus, because of complaints, etc. So it was banned in 1977. But Prabhupada was not particularly against the idea if it was good for increasing the book distribution. It was the GBC who decided to ban it. You can read the discussion with Srila Prabhupada about it at: https://prabhupadabooks.com/conversations/1977/mar/with_gbc_members/mayapura/march/02/1977