ZEC dropped sharply after the revelation of a critical vulnerability in Zcash, capable of creating counterfeit tokens in its private Orchard pool. The crypto market did not just react to a bug.
Zcash developers review turnstile accounting and a second Orchard pool following a patched counterfeiting vulnerability.
Zcash crashes over 40% as AI-linked bug fears, whale shorts, liquidations, and weak crypto sentiment hit $ZEC.
The exploit that nearly broke Zcash originated inside the zero-knowledge proof circuit that powers Orchard, Zcash's newest shielded pool, and the cryptographic core of its private transaction system. Taylor Hornby, a security researcher at Shielded Labs, found it on May 29 during a targeted protocol security review.
Zcash dropped 42.2% in just 24 hours after a critical bug in its Orchard Privacy Pool was disclosed, having gone undetected for four years. The vulnerability allowed unlimited and undetectable minting of fake ZEC tokens; it was discovered on May 29 with the help of Anthropic's Opus 4.8 AI model.
As Zcash (ZEC) price plunged over 40% over the past two days, the fear of a potential crash below $100 remained palpable.
Here is the puzzle. On May 29, 2026, a security researcher hired by Zcash developers found a critical bug in the network's Orchard privacy pool, a flaw that could have let an attacker mint unlimited, undetectable counterfeit ZEC.
Hayes said he would reconsider his stance if his assumptions that an exploit is still possible prove to be incorrect.
Zcash Founder Warns Orchard Bug Could Have Created Undetectable Counterfeit ZEC
Zcash (CRYPTO: ZEC) crashed as low as 50% over the past 36 hours after Shielded Labs disclosed a critical vulnerability allowing unlimited counterfeit ZEC creation—a bug sitting undetected for four years until Anthropic's Claude AI found it. Security Engineer Used Claude Opus 4.8 To Find The Bug On May 29 On May 29, Shielded Labs security engineer Taylor Hornby discovered the Orchard circuit vulnerability using Anthropic's newly released Opus 4.8 model and immediately shared findings with engineers at the Zcash Open Development Lab.
Zcash lost more than $5 billion in market value after its developers, using Anthropic's Claude AI, discovered a long-running flaw in one of its privacy systems that could have enabled counterfeit tokens to be created without easy detection.
An Orchard vulnerability that allowed undetectable counterfeiting of ZEC in its shielded pool has reignited debate over privacy coins.