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.