AFAIK the legal system still applies to crypto; the recourse when somebody hacks your smart contract is the same as when somebody defrauds you; you sue. Except with smart contracts you have more traceability as to what happened.

And you don't need to make the smart contract explicitly subordinate to the law, they are as a matter of fact, because everything de facto is. This idea that code is law and crypto exists in a vacuum is complete delirium (although a popular one and sign that the scene has a lot of room to mature)