Zcash Security Flaw

Zcash Price Plunges After Undetectable Counterfeiting Vulnerability Spurs Crypto Security Debate

Zcash shares in the “Orchard” shielded pool fell sharply after developers disclosed a dormant vulnerability that could have enabled counterfeiting of ZEC without an on-chain trace, and which they say has no cryptographic way to prove was not exploited before it was patched. Multiple reports pegged the selloff at roughly the high-30% range, with some estimates reaching past 50% before partial rebounds as an emergency fix went out in early June and broader remediation followed shortly after. The flaw, stemming from an under-constrained element in the Orchard circuit, was identified by security researcher Taylor Hornby using AI-assisted auditing, and developers said it had been present since Orchard’s activation in May 2022. Beyond the specific bug, the episode reignited concerns that privacy-centric transaction systems can make certain attacks difficult or impossible to verify after the fact, unlike more transparent networks. Looking ahead, the incident is prompting discussion of longer-term technical changes, including potential upgrades to improve supply accountability and public verifiability of ZEC issuance.

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