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)? :)

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)

This is untrue. https://www.consumerfinance.gov/rules-policy/regulations/100...