> So code isn't the law? Why does anyone trust these systems that keep failing time after time? If they need to ask money back and really have poor recourse? Didn't current banking and legal system to develop just solve those issues?

As far as the crypto itself is concerned, of course it is. The issue here is that the founder is using another system to blackmail users.

The fact that this founder had to resort to tactics like these (instead of reverting the mistake on his end) shows that these systems are working as advertised.