It's effectively legal because a lot of financial fraud is not pursued. For example, people from different countries scamming old people out of $1000 for Princ

It's effectively legal because a lot of financial fraud is not pursued. For example, people from different countries scamming old people out of $1000 for Prince Abu to free his millions. That being said, I can understand why you think something being legally exploitable is something new. Just like a loophole in a contract is a loophole in a contract. In the case of smart contracts, there is no recourse unless built in to the contract. This is by design. All that's going to happen is people will start writing smaller, more testable, less damaging contracts. This regime is different from legal contracts because many lawyers specifically write contracts to create problems later. In this new world, good contract writers will be gods. So if you're a good software engineer, there is potentially a huge market about to open up for you.