Zcash infinite counterfeiting bug discovered by AI; ZEC crashes 50-57%, market cap loses $5B
Key Questions
What bug was discovered in Zcash and how was it found?
A 4-year-old infinite counterfeiting vulnerability in Zcash's Orchard shielded pool was uncovered by AI tools from Shielded Labs.
How did the Zcash bug affect the token's price and holders?
ZEC crashed 50-57% and lost $5B in market cap; Arthur Hayes liquidated his position, though 99% of transparent holders were unaffected.
What is the current status of the Zcash bug fix?
ZEC is rebounding as the team works on a fix, while the event has raised broader trust questions for privacy-focused cryptocurrencies.
A 4-year-old infinite counterfeiting bug in Zcash's Orchard pool was discovered by AI (Shielded Labs). ZEC crashed 50-57%, losing $5B market cap. Arthur Hayes liquidated his entire position. Haseeb clarified transparent holders (99%) unaffected; shielded pool size is the prediction market. The bug raises fundamental trust issues for privacy coins. Broader crypto rout deepened with $1.14B liquidations, ETH fell to 13-month low. ZEC now rebounding on fix; bug fix in progress.