The difference is that you have leverage to force the banks to care.
There isn't any federal regulation at all covering your Bitcoin.
Fraud is fraud. There’s plenty of laws against it.
The question is not whether it's legal to defraud someone, but what a financial services provider's obligations are if their customer gets defrauded. The answer here is quite different for banks and brokerages than for crypto exchanges.
it really is not. no bank is going to refund you money cause you are a moron (we have all been morons, I am not trying to disparage the person that got scammed, I sympathize with him)
Bitcoin exchanges like Coinbase are regulated by the CFTC in the US. This case is more of a Google problem though.
I don't believe the CFTC has any rules requiring crypto exchanges to reverse fraudulent transactions.
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.
what federal regulation is there where it is your fault that you allowed someone access into your account? name a statute (any state or federal)? :)
Banks do care because they are on the hook. If someone commits identity theft and steals money from the bank via your account, its on them.
this is not identify theft :)
As long as he didn't give out credentials to his bank account, he's well covered.
he's most definitely not covered. I would run this scam 24/7 with every bank in America if I was "covered" :)
There is no such thing as identity theft. That is a term made up by banks to pass the blame for their insecure means of authentication.
There is such a thing, if you equate “identity theft” with the fraud it enables. Stealing credentials just the first step.
but crypto exchanges/wallets give even fewer shits :)