this isn't fradulent - you being silly and allowing someone full access to your account is your fault as much as leaving a wallet a strip club and calling owner joe for a refund
It is absolutely fraudulent. If you intentionally misrepresent yourself as the real account holder to the financial institution (by presenting credentials that do not belong to you), the institution relies on this misrepresentation, and damages result, that is fraud. Full stop.
It's generally impossible to reverse crypto transactions so such regulation would be pointless. CFTC could force Coinbase to use 2FA but that was already enabled.
