Arthur Hayes has sold his entire ZEC position following the Zcash Orchard pool exploit, declaring that “the Holy Trinity is dead.” The high-profile exit has deepened a selloff that has knocked ZEC down nearly 47% over the past day.
The privacy-focused cryptocurrency Zcash experienced a devastating price collapse following the revelation of a critical security vulnerability by Shielded Labs, a nonprofit developer organization. The announcement detailed a dangerous flaw that had remained hidden within the protocol's Orchard shielded pool infrastructure for nearly four years, dating back to May 2022.
Zcash has experienced one of its biggest selloffs in recent memory as a result of investors' widespread concern over a critical Orchard pool vulnerability.
ZEC drops to $272.79 after an Orchard pool bug, emergency forks, and Arthur Hayes's full exit shake markets.
Security researcher Taylor Hornby used Anthropic's Opus 4.8 to find a critical bug in Zcash's Orchard pool that could have minted undetectable counterfeit ZEC, sending the token down 31%.
Zcash developers have patched a critical flaw in the Orchard shielded pool that a security researcher showed could forge an unlimited supply of counterfeit ZEC. The token fell more than 40% as the disclosure came to light.
Zcash's price fell more than 30% after developers disclosed a critical vulnerability in the network's Orchard shielded pool that could have theoretically allowed the creation of unlimited counterfeit ZEC.
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Shielded Labs revealed that the bug could have helped an attacker print unlimited counterfeit tokens. That could have damaged trust in the token's supply and its value.
Zcash faces fresh pressure after Orchard bug disclosure as Arthur Hayes exits ZEC, citing doubts over counterfeit supply and future checks.
The vulnerability was fixed within days, and findings suggest that actual exploitation of the bug is unlikely.
Bitcoin developer Peter Todd has pushed back against calls to bring Zcash-style privacy into Bitcoin's consensus layer, arguing that the cryptographic risk profile is too high for the network's base protocol.