> Let's assume "code is law" is nonsense, as many comments here say. Then, under what conditions do we define interacting with the blockchain as fradulent? What is fraud and what is not fraud?

The thing is, laws can have issues and bugs as well, just like code! And we have courts to judge not just when someone outright breaks a law but also when someone is skirting on the edges of the law.

Take Germany's "cum ex" scandal for example. Billions of euros were effectively defrauded from the state and on paper the scheme appeared legally sound, but in the end it was all shot down many years later because the actions of the "cum ex" thieves obviously violated the spirit of the law.

The only difference is that blockchains are distributed worldwide and there is no single entity that can be held accountable and forced to execute or reverse any given transaction.