It is a good point though, in such an unregulated market what constitutes as fraud?
"Fraud is a
deception deliberately practiced in order to secure unfair or unlawful gain"
http://en.wikipedia.org/wiki/Fraudonly because the market is not regulated doesn't mean fraud couldn't happen or wouldn't be punishable or even allowed. Many have missconception. Talking to your lawyers is recommended.
Correct. The US Government got involved in the Mt Gox Scam. This one is on their own turf. They will be coming for Josh and company once the complaints start to roll in.
After reading the wikipedia page I am going to have to agree with both of you. Interestingly enough, wiki states that: "That difficulty is found, for instance, in that each and every one of the elements of fraud must be proven, that the elements include proving the states of mind of the perpetrator and the victim, and that some jurisdictions require the victim to prove fraud with so-called clear and convincing evidence".