Why Does One Faces The Law on Crypto-Related Matters When They are Decentralized?

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I made a post a few hours ago which says web3 is not a law-free zone and in the post, I talked about how a Coinbase employee who is the product manager took advantage of his role by releasing confidential information to his brother and partner on what coin to purchase before the official release and also him manipulating the products to be released. When caught, they were reported to authorities and charged to court and if found guilty they are to spend 20 years in jail.

However, I got an interesting and arguable comment from @iskafan which says: it’s shocking one still faces laws on DeFi issues or crypto-related matters. Well, on her opinion she’s right and has a point to ask that because cryptocurrencies and crypto industries operate on the fact that they are decentralized which means not governed by any government authorities or laws so why then do the DeFi issues depend on the authorizes to be resolved or handled.

I don’t know how right I was and I might need another opinion or answer but I responded by saying what happened in the case of Coinbase is a criminal activity against the company and they reported the employee to authorities and charged to court was the right because its stealing and I gave an example of a hacker hacking into a crypto exchange app and stealing funds, when caught they have to face the law.

But the question here or what she meant was if the apps are decentralised, and they face a problem why do they depend on authorities who don’t govern them to solve the crypto-related matter? Could there be a better explanation for this because the answer might look simple but at the same time still confusing if we should accept that decentralisation is government or authorities not interrupting the DeFi ecosystem then the laws shouldn’t be applied too right?

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