The regulators didn't catch Enron, Tyco, or any of the banks in 2008 until after the collapse.

Regulators only know how to catch old kinds of fraud and they are only looking for that hard enough to not get fired. Crypto is a new kind of fraud they do not seem to understand yet. It is in the governments best interest not to get it because if they announced "this is the fraud the crypto industry is doing" that would be orange pill magic for plebs who could point out that is exactly how the central banking system works.

TLDR, take a step back and ask yourself if you have a single life experience you can point to that supports your belief in government competence.