Code is Law, Code is Flawed

The promise of blockchain is "trustless" execution: a smart contract executes exactly as written. The problem? Humans write the code. In 2025 alone, over $3.2 billion has been drained from Decentralized Finance (DeFi) protocols due to logic errors—not hacks of the blockchain itself, but loopholes in the contract wrapper.

"It's like leaving the vault door open because of a typo," says security researcher Alice Wong. "The blockchain did its job perfectly; it processed the theft exactly as requested."

The Regulation Hammer

The SEC has signaled it will hold developers liable for these exploits. If you write the code that loses the money, you are the custodian. This chilling effect is driving development teams offshore, creating a "code haven" dynamic similar to tax havens.