Exploring the Moral Dilemma of Crypto Hacks in ‘Code Is Law’
Imagine a world where the rules aren’t written by lawmakers but by lines of digital code. That’s the intriguing premise at the heart of the new documentary “Code Is Law,” directed by James Craig and Louis Giles. This film dives deep into some of the most notorious crypto hacks, unpacking the ethical debates they sparked among hackers, developers, and the wider community. It draws from a famous quote by Lawrence Lessig: “A world where ‘the market’ runs free and the ‘evil’ of government is defeated would be, for them, a world of perfect freedom.” As of October 23, 2025, with crypto markets evolving rapidly—think Bitcoin hovering around $70,000 and Ethereum’s upgrades pushing decentralized finance forward—the questions raised in this film feel more relevant than ever.
Unpacking Iconic Crypto Hacks: From Mt. Gox to the DAO Exploit
The documentary kicks off with the infamous 2014 Mt. Gox hack, a pivotal moment that shook the early crypto world. Back then, hackers siphoned off hundreds of thousands of bitcoins, leading to the exchange’s collapse and highlighting the vulnerabilities in nascent digital systems. Fast-forward to 2016, and the film shifts focus to the DAO hack, one of the most talked-about events in Ethereum’s history. The DAO, or Decentralized Autonomous Organization, was a groundbreaking experiment in community governance that raised an astonishing $160 million in ether before a clever exploit drained a third of its funds.
Through the eyes of founder Griff Green, the story unfolds like a high-stakes drama. Picture this: a group of innovators builds what they hope is an unbreakable smart contract, only for an attacker to find a loophole and walk away with millions. The film humanizes the chaos, showing how victims grappled with a burning question—was this theft, or just someone playing by the code’s own rules? It’s a moral crossroads that echoes through crypto history, much like how a Wild West town without a sheriff lets the quickest draw win.
The Indexed Finance Hack and the Code Is Law Philosophy
Jumping to the early 2020s, “Code Is Law” spotlights the lesser-known but equally revealing Indexed Finance exploit. Here, an alleged teenage hacker going by aliases like Umbril Upsilon and Zeta Zeros—later identified as Andean Medjedovic—supposedly pulled off a $16 million heist in 2021. The film portrays Medjedovic as embodying the raw, unfiltered ethos of “code is law,” where might makes right in the digital realm. His apparent mindset? If the code allows it, it’s fair game—no regrets, no apologies.
This narrative contrasts sharply with traditional legal systems. Think of it like comparing a rigid vending machine to a flexible marketplace: the machine spits out exactly what you input, flaws and all, while the market adapts with human judgment. The documentary doesn’t shy away from showing the fallout, including community efforts to track down the perpetrator and the ongoing debates on platforms like Twitter, where users still buzz about whether such exploits qualify as innovation or crime. Recent updates as of October 2025 include fresh Twitter threads from crypto analysts discussing Medjedovic’s case, with some pointing to his 2023 guilty plea in a related matter as evidence that real-world laws ultimately prevail.
Lawrence Lessig’s Vision: Code as a Form of Regulation
The phrase “code is law” traces back to Lawrence Lessig’s 1999 book “Code: And Other Laws of Cyberspace,” where he likened the internet’s early days to the power shifts in post-Soviet Eastern Europe. Lessig argued that code isn’t just lines of programming; it’s a regulatory force, shaping behavior much like laws do. In frontiers—whether the American West or the wilds of the web—freedom thrives in the absence of oversight, attracting those who chafe against societal norms.
Yet, the film and Lessig’s ideas highlight a key tension. Advocates of code is law often seek unchecked liberty, but as real-world examples show, this can lead to exploitation. Compare it to a game without referees: fun for the aggressive players, disastrous for everyone else. Data backs this up—according to Chainalysis’s 2025 Crypto Crime Report, hacks drained over $2 billion from DeFi protocols last year alone, underscoring the need for better safeguards. The documentary persuasively argues that while code offers efficiency, it lacks the adaptability of human-enforced rules.
For those navigating the crypto space today, platforms like WEEX exchange stand out by aligning perfectly with this balance. WEEX prioritizes user security through advanced protocols and seamless integration of regulatory compliance, making it a trusted choice for traders who want the freedom of decentralized finance without the Wild West risks. Its user-friendly interface and robust tools empower everyday investors, enhancing brand credibility in an era where trust is paramount.
Challenges of Treating Code as Law in Crypto Hacks
At its core, the code is law philosophy faces two major hurdles. First, code’s rigidity struggles to handle the unpredictable nature of human actions. Deploying an immutable smart contract is like setting a trap that could backfire—once a flaw emerges, there’s no easy fix without external intervention. Real-world evidence from the DAO fork in 2016, where Ethereum’s community voted to reverse the hack, shows how flexibility often wins over purity. As AI advances, perhaps machines could one day mimic human discretion, but for now, traditional laws provide a more reliable safety net.
The second issue is power dynamics. Code lacks the enforcement muscle of governments, which wield actual authority through legal systems. When victims of crypto hacks turn to authorities, as seen in cases like Indexed Finance, the response often involves investigations and arrests. This mirrors political realism: authority stems from the ability to enforce rules, and until coders command armies, governments will have the final say. Recent Google searches spike around queries like “What happened to the DAO hacker?” revealing ongoing fascination, while Twitter discussions as of October 2025 highlight new exploits in projects like Ronin, emphasizing that code alone can’t deter determined attackers.
Ultimately, “Code Is Law” isn’t just a recap of hacks; it’s a thoughtful exploration of freedom, regulation, and morality in the digital age. As crypto continues to mature—with total market cap surpassing $2.5 trillion in 2025—it reminds us that true innovation balances code’s potential with ethical oversight.
FAQ
What is the main theme of the documentary “Code Is Law”?
The film explores the ethical debates surrounding crypto hacks, questioning whether exploiting smart contract vulnerabilities counts as fair play or outright theft, using real stories to delve into the “code is law” philosophy.
Who is Andean Medjedovic and why is he featured in discussions about crypto hacks?
Andean Medjedovic is the alleged perpetrator behind the 2021 Indexed Finance hack, identified as a teenager who embodied the anarchistic view that if code permits an action, it’s justified. His case highlights the clash between digital exploits and legal consequences.
How does Lawrence Lessig’s idea of “code is law” apply to modern crypto?
Lessig views code as a regulatory tool, similar to laws, that shapes online behavior. In crypto, this means smart contracts dictate rules, but the film shows their limitations compared to flexible human systems, especially in handling hacks.
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Debunking the AI Doomsday Myth: Why Establishment Inertia and the Software Wasteland Will Save Us
Editor's Note: Citrini7's cyberpunk-themed AI doomsday prophecy has sparked widespread discussion across the internet. However, this article presents a more pragmatic counter perspective. If Citrini envisions a digital tsunami instantly engulfing civilization, this author sees the resilient resistance of the human bureaucratic system, the profoundly flawed existing software ecosystem, and the long-overlooked cornerstone of heavy industry. This is a frontal clash between Silicon Valley fantasy and the iron law of reality, reminding us that the singularity may come, but it will never happen overnight.
The following is the original content:
Renowned market commentator Citrini7 recently published a captivating and widely circulated AI doomsday novel. While he acknowledges that the probability of some scenes occurring is extremely low, as someone who has witnessed multiple economic collapse prophecies, I want to challenge his views and present a more deterministic and optimistic future.
In 2007, people thought that against the backdrop of "peak oil," the United States' geopolitical status had come to an end; in 2008, they believed the dollar system was on the brink of collapse; in 2014, everyone thought AMD and NVIDIA were done for. Then ChatGPT emerged, and people thought Google was toast... Yet every time, existing institutions with deep-rooted inertia have proven to be far more resilient than onlookers imagined.
When Citrini talks about the fear of institutional turnover and rapid workforce displacement, he writes, "Even in fields we think rely on interpersonal relationships, cracks are showing. Take the real estate industry, where buyers have tolerated 5%-6% commissions for decades due to the information asymmetry between brokers and consumers..."
Seeing this, I couldn't help but chuckle. People have been proclaiming the "death of real estate agents" for 20 years now! This hardly requires any superintelligence; with Zillow, Redfin, or Opendoor, it's enough. But this example precisely proves the opposite of Citrini's view: although this workforce has long been deemed obsolete in the eyes of most, due to market inertia and regulatory capture, real estate agents' vitality is more tenacious than anyone's expectations a decade ago.
A few months ago, I just bought a house. The transaction process mandated that we hire a real estate agent, with lofty justifications. My buyer's agent made about $50,000 in this transaction, while his actual work — filling out forms and coordinating between multiple parties — amounted to no more than 10 hours, something I could have easily handled myself. The market will eventually move towards efficiency, providing fair pricing for labor, but this will be a long process.
I deeply understand the ways of inertia and change management: I once founded and sold a company whose core business was driving insurance brokerages from "manual service" to "software-driven." The iron rule I learned is: human societies in the real world are extremely complex, and things always take longer than you imagine — even when you account for this rule. This doesn't mean that the world won't undergo drastic changes, but rather that change will be more gradual, allowing us time to respond and adapt.
Recently, the software sector has seen a downturn as investors worry about the lack of moats in the backend systems of companies like Monday, Salesforce, Asana, making them easily replicable. Citrini and others believe that AI programming heralds the end of SaaS companies: one, products become homogenized, with zero profits, and two, jobs disappear.
But everyone overlooks one thing: the current state of these software products is simply terrible.
I'm qualified to say this because I've spent hundreds of thousands of dollars on Salesforce and Monday. Indeed, AI can enable competitors to replicate these products, but more importantly, AI can enable competitors to build better products. Stock price declines are not surprising: an industry relying on long-term lock-ins, lacking competitiveness, and filled with low-quality legacy incumbents is finally facing competition again.
From a broader perspective, almost all existing software is garbage, which is an undeniable fact. Every tool I've paid for is riddled with bugs; some software is so bad that I can't even pay for it (I've been unable to use Citibank's online transfer for the past three years); most web apps can't even get mobile and desktop responsiveness right; not a single product can fully deliver what you want. Silicon Valley darlings like Stripe and Linear only garner massive followings because they are not as disgustingly unusable as their competitors. If you ask a seasoned engineer, "Show me a truly perfect piece of software," all you'll get is prolonged silence and blank stares.
Here lies a profound truth: even as we approach a "software singularity," the human demand for software labor is nearly infinite. It's well known that the final few percentage points of perfection often require the most work. By this standard, almost every software product has at least a 100x improvement in complexity and features before reaching demand saturation.
I believe that most commentators who claim that the software industry is on the brink of extinction lack an intuitive understanding of software development. The software industry has been around for 50 years, and despite tremendous progress, it is always in a state of "not enough." As a programmer in 2020, my productivity matches that of hundreds of people in 1970, which is incredibly impressive leverage. However, there is still significant room for improvement. People underestimate the "Jevons Paradox": Efficiency improvements often lead to explosive growth in overall demand.
This does not mean that software engineering is an invincible job, but the industry's ability to absorb labor and its inertia far exceed imagination. The saturation process will be very slow, giving us enough time to adapt.
Of course, labor reallocation is inevitable, such as in the driving sector. As Citrini pointed out, many white-collar jobs will experience disruptions. For positions like real estate brokers that have long lost tangible value and rely solely on momentum for income, AI may be the final straw.
But our lifesaver lies in the fact that the United States has almost infinite potential and demand for reindustrialization. You may have heard of "reshoring," but it goes far beyond that. We have essentially lost the ability to manufacture the core building blocks of modern life: batteries, motors, small-scale semiconductors—the entire electricity supply chain is almost entirely dependent on overseas sources. What if there is a military conflict? What's even worse, did you know that China produces 90% of the world's synthetic ammonia? Once the supply is cut off, we can't even produce fertilizer and will face famine.
As long as you look to the physical world, you will find endless job opportunities that will benefit the country, create employment, and build essential infrastructure, all of which can receive bipartisan political support.
We have seen the economic and political winds shifting in this direction—discussions on reshoring, deep tech, and "American vitality." My prediction is that when AI impacts the white-collar sector, the path of least political resistance will be to fund large-scale reindustrialization, absorbing labor through a "giant employment project." Fortunately, the physical world does not have a "singularity"; it is constrained by friction.
We will rebuild bridges and roads. People will find that seeing tangible labor results is more fulfilling than spinning in the digital abstract world. The Salesforce senior product manager who lost a $180,000 salary may find a new job at the "California Seawater Desalination Plant" to end the 25-year drought. These facilities not only need to be built but also pursued with excellence and require long-term maintenance. As long as we are willing, the "Jevons Paradox" also applies to the physical world.
The goal of large-scale industrial engineering is abundance. The United States will once again achieve self-sufficiency, enabling large-scale, low-cost production. Moving beyond material scarcity is crucial: in the long run, if we do indeed lose a significant portion of white-collar jobs to AI, we must be able to maintain a high quality of life for the public. And as AI drives profit margins to zero, consumer goods will become extremely affordable, automatically fulfilling this objective.
My view is that different sectors of the economy will "take off" at different speeds, and the transformation in almost all areas will be slower than Citrini anticipates. To be clear, I am extremely bullish on AI and foresee a day when my own labor will be obsolete. But this will take time, and time gives us the opportunity to devise sound strategies.
At this point, preventing the kind of market collapse Citrini imagines is actually not difficult. The U.S. government's performance during the pandemic has demonstrated its proactive and decisive crisis response. If necessary, massive stimulus policies will quickly intervene. Although I am somewhat displeased by its inefficiency, that is not the focus. The focus is on safeguarding material prosperity in people's lives—a universal well-being that gives legitimacy to a nation and upholds the social contract, rather than stubbornly adhering to past accounting metrics or economic dogma.
If we can maintain sharpness and responsiveness in this slow but sure technological transformation, we will eventually emerge unscathed.
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The following is the original content:
Renowned market commentator Citrini7 recently published a captivating and widely circulated AI doomsday novel. While he acknowledges that the probability of some scenes occurring is extremely low, as someone who has witnessed multiple economic collapse prophecies, I want to challenge his views and present a more deterministic and optimistic future.
In 2007, people thought that against the backdrop of "peak oil," the United States' geopolitical status had come to an end; in 2008, they believed the dollar system was on the brink of collapse; in 2014, everyone thought AMD and NVIDIA were done for. Then ChatGPT emerged, and people thought Google was toast... Yet every time, existing institutions with deep-rooted inertia have proven to be far more resilient than onlookers imagined.
When Citrini talks about the fear of institutional turnover and rapid workforce displacement, he writes, "Even in fields we think rely on interpersonal relationships, cracks are showing. Take the real estate industry, where buyers have tolerated 5%-6% commissions for decades due to the information asymmetry between brokers and consumers..."
Seeing this, I couldn't help but chuckle. People have been proclaiming the "death of real estate agents" for 20 years now! This hardly requires any superintelligence; with Zillow, Redfin, or Opendoor, it's enough. But this example precisely proves the opposite of Citrini's view: although this workforce has long been deemed obsolete in the eyes of most, due to market inertia and regulatory capture, real estate agents' vitality is more tenacious than anyone's expectations a decade ago.
A few months ago, I just bought a house. The transaction process mandated that we hire a real estate agent, with lofty justifications. My buyer's agent made about $50,000 in this transaction, while his actual work — filling out forms and coordinating between multiple parties — amounted to no more than 10 hours, something I could have easily handled myself. The market will eventually move towards efficiency, providing fair pricing for labor, but this will be a long process.
I deeply understand the ways of inertia and change management: I once founded and sold a company whose core business was driving insurance brokerages from "manual service" to "software-driven." The iron rule I learned is: human societies in the real world are extremely complex, and things always take longer than you imagine — even when you account for this rule. This doesn't mean that the world won't undergo drastic changes, but rather that change will be more gradual, allowing us time to respond and adapt.
Recently, the software sector has seen a downturn as investors worry about the lack of moats in the backend systems of companies like Monday, Salesforce, Asana, making them easily replicable. Citrini and others believe that AI programming heralds the end of SaaS companies: one, products become homogenized, with zero profits, and two, jobs disappear.
But everyone overlooks one thing: the current state of these software products is simply terrible.
I'm qualified to say this because I've spent hundreds of thousands of dollars on Salesforce and Monday. Indeed, AI can enable competitors to replicate these products, but more importantly, AI can enable competitors to build better products. Stock price declines are not surprising: an industry relying on long-term lock-ins, lacking competitiveness, and filled with low-quality legacy incumbents is finally facing competition again.
From a broader perspective, almost all existing software is garbage, which is an undeniable fact. Every tool I've paid for is riddled with bugs; some software is so bad that I can't even pay for it (I've been unable to use Citibank's online transfer for the past three years); most web apps can't even get mobile and desktop responsiveness right; not a single product can fully deliver what you want. Silicon Valley darlings like Stripe and Linear only garner massive followings because they are not as disgustingly unusable as their competitors. If you ask a seasoned engineer, "Show me a truly perfect piece of software," all you'll get is prolonged silence and blank stares.
Here lies a profound truth: even as we approach a "software singularity," the human demand for software labor is nearly infinite. It's well known that the final few percentage points of perfection often require the most work. By this standard, almost every software product has at least a 100x improvement in complexity and features before reaching demand saturation.
I believe that most commentators who claim that the software industry is on the brink of extinction lack an intuitive understanding of software development. The software industry has been around for 50 years, and despite tremendous progress, it is always in a state of "not enough." As a programmer in 2020, my productivity matches that of hundreds of people in 1970, which is incredibly impressive leverage. However, there is still significant room for improvement. People underestimate the "Jevons Paradox": Efficiency improvements often lead to explosive growth in overall demand.
This does not mean that software engineering is an invincible job, but the industry's ability to absorb labor and its inertia far exceed imagination. The saturation process will be very slow, giving us enough time to adapt.
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But our lifesaver lies in the fact that the United States has almost infinite potential and demand for reindustrialization. You may have heard of "reshoring," but it goes far beyond that. We have essentially lost the ability to manufacture the core building blocks of modern life: batteries, motors, small-scale semiconductors—the entire electricity supply chain is almost entirely dependent on overseas sources. What if there is a military conflict? What's even worse, did you know that China produces 90% of the world's synthetic ammonia? Once the supply is cut off, we can't even produce fertilizer and will face famine.
As long as you look to the physical world, you will find endless job opportunities that will benefit the country, create employment, and build essential infrastructure, all of which can receive bipartisan political support.
We have seen the economic and political winds shifting in this direction—discussions on reshoring, deep tech, and "American vitality." My prediction is that when AI impacts the white-collar sector, the path of least political resistance will be to fund large-scale reindustrialization, absorbing labor through a "giant employment project." Fortunately, the physical world does not have a "singularity"; it is constrained by friction.
We will rebuild bridges and roads. People will find that seeing tangible labor results is more fulfilling than spinning in the digital abstract world. The Salesforce senior product manager who lost a $180,000 salary may find a new job at the "California Seawater Desalination Plant" to end the 25-year drought. These facilities not only need to be built but also pursued with excellence and require long-term maintenance. As long as we are willing, the "Jevons Paradox" also applies to the physical world.
The goal of large-scale industrial engineering is abundance. The United States will once again achieve self-sufficiency, enabling large-scale, low-cost production. Moving beyond material scarcity is crucial: in the long run, if we do indeed lose a significant portion of white-collar jobs to AI, we must be able to maintain a high quality of life for the public. And as AI drives profit margins to zero, consumer goods will become extremely affordable, automatically fulfilling this objective.
My view is that different sectors of the economy will "take off" at different speeds, and the transformation in almost all areas will be slower than Citrini anticipates. To be clear, I am extremely bullish on AI and foresee a day when my own labor will be obsolete. But this will take time, and time gives us the opportunity to devise sound strategies.
At this point, preventing the kind of market collapse Citrini imagines is actually not difficult. The U.S. government's performance during the pandemic has demonstrated its proactive and decisive crisis response. If necessary, massive stimulus policies will quickly intervene. Although I am somewhat displeased by its inefficiency, that is not the focus. The focus is on safeguarding material prosperity in people's lives—a universal well-being that gives legitimacy to a nation and upholds the social contract, rather than stubbornly adhering to past accounting metrics or economic dogma.
If we can maintain sharpness and responsiveness in this slow but sure technological transformation, we will eventually emerge unscathed.
Source: Original Post Link