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The code isn’t law, apparently.
This exchange isn't code running on the blockchain--nor was this transfer even managed by code at all (the article says it involved a manual typo by a human)--and so that seems irrelevant.
I'm sad to hear that the courts sided with the exchange.

What's the statute of limitations on noticing a typo in your account?

Had the recipient bought cryptocurrencies with the proceeds, I wonder how much harder that would be to claw back. Could they still come out on top if they sell the house they bought for a profit?