A new documentary, Code is Law, delves into the ethical complexities surrounding cryptocurrency hacks, challenging the notion that code alone should govern digital financial systems. Directed by James Craig and Louis Giles, the film examines infamous crypto heists and the moral reasoning employed by the perpetrators.

The “Code is Law” Philosophy

The documentary explores the “code is law” philosophy, which posits that the code governing decentralized systems is the ultimate authority, rendering traditional legal frameworks obsolete. This ethos has been central to the cryptocurrency community, emphasizing self-governance and autonomy. However, the film questions whether this principle should extend to actions that exploit system vulnerabilities for personal gain.

Case Studies Highlighted in the Film

The film features two significant cases:

The DAO Hack (2016): The first major decentralized autonomous organization (DAO) was compromised, leading to a $50 million theft. Community members, including Griff Green, formed “The White Hat Group” to recover the funds, raising questions about the ethical implications of intervening in a system governed by code.

The KyberSwap and Indexed Finance Exploits: Teenager Andean Medjedovic exploited vulnerabilities in these decentralized finance platforms, stealing $65 million. Medjedovic invoked the “code is law” defense, arguing that his actions were justified within the system’s rules. He remains an international fugitive.

Ethical and Legal Implications

Code is Law examines the tension between technological autonomy and traditional legal principles. It raises critical questions:

Is exploiting code vulnerabilities a legitimate action within decentralized systems?

Should actions that adhere to system rules but harm participants be considered ethical?

Can decentralized systems operate effectively without legal oversight?

The documentary suggests that while code can enforce rules, it may not account for ethical considerations, highlighting the need for a balance between technological autonomy and legal accountability.

Conclusion

Code is Law offers a compelling exploration of the moral dilemmas in the cryptocurrency world, urging viewers to reconsider the adequacy of code as the sole governing force in digital finance. The film is available for streaming on Apple TV+, Amazon Prime Video, and YouTube Movies.