What is that supposed to be? It’s not a known concept. If you think it means something you should define it.
As a lawyer, it’s perfectly legal to circumvent a law by designing around it. Crypto does that perfectly. So does everybody else. Heck, the whole open source movement does it.
If instead you are saying that it’s good to find loopholes in laws that violate the spirit of the law, but not the letter of the law … well, you just explained why smart contracts are stupid and will never work.
Edit: by your definition, this “hack” was just innovation designed around the “law” of the smart contracts ;)
The theme appears to be that innovation brings many benefits and great risks. I would advise appreciation of nuance and thoughtfulness. As we become a Kardashev Type I civilization, we could carefully consider the way we organize our society and the existential risks we create for ourselves. For the first time in our history, we have the ability to pretty much completely annihilate ourselves and we're only creating more ways to do it. Maybe some caution is due.
(1) https://daily.jstor.org/an-affordable-radio-brought-nazi-pro....
And if I might say so, for a tech forum, there seems to be a remarkable number of luddites who sit mighty high on their horses as they sing the praises of Chesterton's fence while simultaneously baying over the stagnation of housing, transportation, and their flavor-of-the-week, dead-on-arrival revolution, etc.
Should we never have used GPS because a good map won't lead you into a desert? Should we stop using phones because a one-to-one conversation may end up as dead an art as Latin is a language? Not everything that was done before was done for the right reason. Not now or even then. They were done mainly because there was no other given choice or someone on a high chair said so and signed his name on a piece of paper declaring it as law.
I'd say it's beneficial that those regulations have been circumvented even if I don't necessarily cheer on the particular actors who do the circumventing or what they do afterwards. Innovation is about finding novel ways to get from A to B as speedily, efficiently, and effectively as possible. And if regulations create a roadblock to it, all the more reason to invent around them. After all, there wouldn't a modern desktop if it wasn't for Compaq engineers reverse-engineering and reimplementing IBM's BIOS.